ITCEN-affiliated Comtec System to Raise 52.5 Billion KRW in Paid-in Capital Increase for Cloud Investment

[Asia Economy Reporter Lim Jeong-su] Comtec System, a listed company affiliated with the ITCEN Group, announced on the 30th that it will proceed with a paid-in capital increase worth 52.7 billion KRW to strengthen its cloud business capabilities.

This capital increase will be conducted through a rights offering to existing shareholders followed by a general public offering for any unsubscribed shares. The new share issuance price will be set on June 1, and the allocation date for the new shares is June 4, three days later. Subscription for existing shareholders will take place from July 9 to 10, and the subscription for the general public offering of unsubscribed shares will be held from July 19 to 20. The new shares are scheduled to be listed on August 5.

Comtec System plans to use most of the funds raised through this capital increase for investments related to its cloud business. Approximately 42.7 billion KRW will be allocated for purchasing cloud equipment and hiring personnel, while the remaining 10 billion KRW will be used to repay existing borrowings.

Currently, Comtec System provides cloud-based solutions to over 50 public institutions and corporate clients. Based on this solid customer base, the company recorded sales of 238.6 billion KRW and an operating profit of 1.8 billion KRW last year.

They have expanded new revenue streams (cash cows) by building cloud-based solutions such as video conferencing services based on Cisco WebEX for the National Assembly, public institutions, financial sectors, and corporations.

Comtec System expects steady sales growth going forward. Due to the government’s Digital New Deal policy and the digitalization of companies, demand for cloud-based solutions like Cisco WebEX is increasing. Additionally, since continuous maintenance and support are required after supplying the solutions, the company anticipates generating consistent cash flow.

A Comtec System representative stated, "We decided on the paid-in capital increase to respond to the growing requests for cloud services from our clients," adding, "Through expanding our equipment, we will lead the related business market by attracting new customers."

This content was produced with the assistance of AI translation services.