Doosan Robotics

History

2023: Going public

South Korean company Doosan Robotics, a manufacturer of robots designed to work with humans, has implemented an initial public offering (IPO) procedure in Seoul. On October 5, 2023, on the first day of trading, the value of securities more than doubled - by 127%.

Doosan Robotics, whose robots know how to cook coffee and pour beer, as part of its IPO placed 16.2 million shares at a price of 26 thousand Korean won apiece (approximately $19.25 at the exchange rate as of October 5, 2023). Thus, the company conducted an IPO of 421.2 billion won (about $311.8 million), which was the largest initial placement in South Korea in 2023.

Doosan Robotics carries out initial public offering (IPO) procedure in Seoul

Trading in Doosan Robotics shares on October 5, 2023 opened at 59.1 thousand won ($43.75) per share, which is 127% higher than the IPO price. During the trading day, the cost reached 67.6 thousand won, after which it decreased to 51.4 thousand won by the close of the session.

Doosan Robotics plans to use the funds received from the IPO for strategic acquisitions and overseas expansion. The company's customers include major corporations such as Hyundai Motor and LG Electronics. Even though Doosan Robotics is a prominent player in the engineering industry, it has faced challenges from weak gross margins and poor return on assets.

Analysts say Doosan Robotics picked a good time for the IPO. Although the company competes with Japan's Fanuc and Denmark's Universal Robots, there is great potential for growth. Doosan Robotics robots are increasingly being used in cafes and bars due to labor shortages and soaring pay costs. The company will be able to use the funds raised to expand the product range and increase the geography of sales.^[1]

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