Myoung Shin Industry President Park Bong-kun speaks at a briefing in Seoul on Wednesday. (Myoung Shin Ind.)
South Korean midsized automotive parts maker Myoung Shin Industry said Wednesday it is looking to raise as much as 91.2 billion won ($82.3 million) from its initial public offering on the nation’s benchmark Kospi early next month.
“We are looking forward to raise our overseas sales from the current 30 percent to 70 percent to become the No. 1 global green car automotive parts maker,” said Park Bong-kun, president of the company to be listed as Myoung Shin Ind., in a press briefing.
Founded in 1982, the parts maker has served clients such as Hyundai Motor, Kia Motors and Tesla with its customized hot-stamping technique. It applies special pressing and cooling simultaneously, making its parts stronger than other conventional products.
With its strength, Myoung Shin’s sales and operating profit last year recorded 775.7 billion won and 59.6 billion won, respectively. The growth rate of the firm’s annual average sales came to 61 percent between 2016 and 2019. Despite the COVID-19-hit economy, its sales and operating profit also marked 354.8 billion won and 22.8 billion won, respectively, in the first half of this year.
While the hot-stamping market is expected to grow in line with higher demand for electric vehicles, the firm will further secure more global automaker clients to establish a solid foothold in the industry with its production bases in the US and China, Park added.
The parts maker is offering some 15.72 million shares in a price band of 4,900-5,800 won. The exact share price will be determined Wednesday through the book building process for institutions before investors can apply Friday and Monday. Mirae Asset Daewoo and Hyundai Motor Securities are underwriting the deal.
Among the IPO proceeds, around 24.4 billion won will be used to expand overseas business, mostly from the US and China to Europe, India and Brazil. To do so, the company will build an extra factory facility in the US for electric vehicles by the end of next year.
By Jie Ye-eun (email@example.com