Shares in South Korean Robotics Company Doosan Robotics surged as the affiliate geared up for an estimated $315 million initial public offering. The stock jumped by as much as 30% to 151,800 won in early afternoon trading, on track for the biggest daily gain in a year and outpacing the benchmark Kospi index. The rally came after Doosan Robotics began a book-building process to measure investor demand for the offer, scheduled for Sept. 21-22.
Doosan Robotics is a leading maker of so-called collaborative robots that work side-by-side with humans, such as robot arms that perform assembling, loading, and welding tasks. The company, which counts Seoul-listed Doosan Co as its biggest shareholder, has a market share of 5.4 percent in the global collaborative robot sector, according to research firm Meritz Securities.
The cobots, which operate more closely with human employees than industrial robots, are considered safer and easier to use. They are used in a variety of business-to-business and consumer-to-consumer production processes. Doosan Robotics has been expanding its presence in the industry, securing more than 100 customers globally with a wide range of models and solutions.
Doosan Robotics has also been bolstering its marketing activities by launching a global campaign centered on its animated character, Rokey. The campaign aims to showcase its robotics technology as the ‘key’ to various business and C2C production processes.
Despite the strong growth, Doosan Robotics is still in the red. The company has posted losses in the last two years. It is seeking to recoup those losses with the proceeds from the IPO and by boosting sales of its products.
Some analysts say the offer price is too high for Doosan Robotics. They point out that the IPO offering price is based on a projected profit per share in 2026, which does not consider its operating losses in the current year and the first half of this year.
Nevertheless, many investors believe the cobots will become increasingly popular as they are considered safer than traditional industrial robots and can help reduce labor costs. The demand for such robots is expected to grow further with a growing middle class in developing countries. Meanwhile, the company plans to invest more in its manufacturing facilities and diversify its product portfolio. The IPO is set to be listed on the main board of the Korea Exchange. Its cornerstone investors include Singapore sovereign wealth fund GIC Pte, Norway’s $1.4 trillion sovereign wealth fund Norges Bank Investment Management, Blackrock, and Goldman Sachs. The underwriters are Mirae Asset Securities and Korea Investment & Securities. The offering is one of the few IPOs planned this year that could boost South Korea’s dormant IPO market, which has yet to see any debuts larger than $100 million this year.
