Investors Overcome Concerns About High Interest Rates, Pour $29 Billion into Doosan Robotics IPO
Seoul Finance | By Park Si-hyeong
Despite worries over persistently high interest rates, the public stock subscription for Doosan Robotics saw an impressive investment of 33 trillion won ($29 billion) over two days. The subscription process, which took place from the 21st to the 22nd of this month, exceeded expectations despite market concerns.
Main underwriters Korea Investment & Securities and Mirae Asset Securities collected approximately 33.1093 billion won in subscription proceeds, with a total of 1,496,346 subscriptions made. The competition rate stood at an astounding 524.05 to 1, reflecting the immense interest from investors.
With an overall subscription margin of 50%, the total subscription amount is expected to reach a staggering 66 trillion won, making it the largest amount invested this year after the 63 trillion won demand forecast from institutional investors in September.
It is important to note that these figures are provisional and do not account for duplicate subscriptions made by some investors.
Previously, Phil Energy held the record for the largest margin amount collected during a subscription, with approximately 16 trillion won.
The general subscription for Doosan Robotics was carried out through joint lead managers such as Korea Investment & Securities, Mirae Asset Securities, NH Investment & Securities, KB Securities, and CS Securities. Underwriters Kiwoom Securities, Shinyoung Securities, and Hana Securities also participated in the process.
Out of the total publicly offered shares of 16.2 million, the general subscription received 4.86 million shares, accounting for 30% of the offering.
During the subscription process, both equal allocation and proportional allocation methods were utilized. Applicants who applied for the minimum amount were given “equal allocation,” while those who applied for a lump sum were entitled to “equal + proportional allocation.” Equal allocation ensured that all participants received a share of the public offering, regardless of the size of their margin deposit. Proportional allocation, on the other hand, allocated stocks based on the amount of subscription deposit paid.
Prior to the subscription, Doosan Robotics conducted demand forecasting for domestic and foreign institutional investors from the 11th to the 15th of this month. The final public offering price was set at 26,000 won, the upper end of the desired band ranging from 21,000 won to 26,000 won.
Despite the regulations implemented in July this year, which aimed to prevent excessive subscription amounts beyond the investors’ payment capacity, Doosan Robotics achieved the highest level of institutional participation among newly listed companies in 2023.
Significantly, foreign sovereign wealth funds and ultra-long funds also participated in the demand forecasting process. These investors accounted for a remarkable 51.6% (based on size) of mandatory holdings among the total participants.
The funds raised through this IPO will be utilized by Doosan Robotics to acquire and invest in strategic businesses, thus expanding its product portfolio and overseas presence. The company plans to drive high growth by acquiring autonomous robot (AMR) and other cutting-edge technology companies, investing in domestic and foreign production facilities, conducting research and development for new products, and strengthening its global business.
CEO of Doosan Robotics, Jeong-hoon Ryu, expressed gratitude toward the investors who believed in and supported the future growth potential of the company. He emphasized the company’s commitment to transparent communication with shareholders and fostering collaboration within the collaborative robot market ecosystem. Ryu concluded, “We will strive to achieve these goals after our listing.”
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Despite concerns about high interest rates, the subscription competition rate is 524 to 1
Subscriptions for Doosan Robotics are underway at Korea Investment & Securities branches. (Photo = Korea Investment and Securities)
[서울파이낸스 박시형 기자] As a result of Doosan Robotics’ public stock subscription to general investors over two days from the 21st to the 22nd, 33 trillion won was calculated to be invested despite concerns about prolonged high interest rates.
According to the industry on the 24th, about 33,109.3 billion subscription proceeds were collected in Korea Investment & Securities and Mirae Asset Securities, which are the main underwriters for the Doosan Robotics IPO, and 1,496,346 subscriptions were made. The competition rate is 524.05 to 1.
Given that the overall subscription margin is 50%, the subscription amount is doubled to KRW 66 trillion, which will be the largest amount this year following the KRW 63 trillion won in demand forecast participation from institutional investors that closed on September 15.
This figure is a provisional total which does not take into account the number of investors who have made duplicate subscriptions.
Previously, Phil Energy, which was listed last July, had the biggest record by collecting about 16 trillion won on the margin at the time of subscription.
The general subscription held this time was conducted through joint lead managers Korea Investment & Securities, Mirae Asset Securities, joint lead managers NH Investment & Securities, KB Securities, and CS Securities, and underwriters Kiwoom Securities, Shinyoung Securities, and Hana Securities.
General subscription was received for 4.86 million shares, which corresponds to 30% of the total publicly offered shares of 16.2 million.
In this competition, equal allocation and proportional allocation were used in half. If you apply for the minimum, you will receive an ‘equal allocation’, and if you apply for a lump sum that is more than that, you will receive an ‘equal + proportional allocation’. Equal allocation distributes public offering shares to all who participated in the subscription, regardless of the size of the margin. Proportional allotment allocates stocks in proportion to the amount of subscription deposit paid.
Doosan Robotics conducted demand forecasting for domestic and foreign institutional investors for five days from the 11th to the 15th, and determined the final public offering price at 26,000 won, the upper end of the desired band (21,000 won to 26,000 won ) which.
Doosan Robotics conducted demand forecasting for domestic and foreign institutional investors for five days from the 11th to the 15th, and determined the final public offering price at 26,000 won, the upper end of the desired band (21,000 won to 26,000 won ) which.
In particular, despite the fact that the so-called ‘imaginary number’ subscription exceeding the payment capacity in demand forecasting becomes impossible in accordance with the revised regulations from July this year, it showed the highest level of institutional participation among newly listed companies that held a public offering in 2023.
Meanwhile, foreign sovereign wealth funds and ultra-long funds participated in demand forecasting, and recorded resounding success, recording 51.6% (based on size) of mandatory holdings among total participants.
Doosan Robotics intends to use the public offering funds secured through this IPO to acquire and invest in strategic businesses to complement its existing product portfolio and expand its overseas business. He plans to drive the company’s high growth by using it to acquire AMR (autonomous robot) and other fringe technology companies, invest in domestic and foreign production facilities, research and develop new products, and strengthen overseas business.
Jeong-hoon Ryu, CEO of Doosan Robotics, said, “Following the demand forecast, we would like to thank the many investors who believed in and supported the future growth value of Doosan Robotics. After listing, we will actively communicate with shareholders and the growth leader of the company and the ecosystem of the collaborative robot market.” “We will do our best to make it happen,” he said.
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