[IPO] Youngchang Chemical "Leap to a Global Total Chemical Solutions Company"

Lee Seung-hoon, CEO of Youngchang Chemical, is introducing the company at a press conference for KOSDAQ listing held on the 23rd in Yeouido, Seoul. / Photo by Youngchang Chemical

[Asia Economy Reporter Jang Hyowon] “We will leap forward as a global total chemical solution company leading the core fields of the 4th industrial revolution: semiconductors, displays, and eco-friendly energy industries.”

Lee Seunghoon, CEO of Youngchang Chemical, which is preparing for a special listing under the materials, parts, and equipment (SoBuJang) category, held a press conference on the 23rd in Yeouido, Seoul, stating, “Through the KOSDAQ listing, we will focus on technological advancement, expansion of production capacity (CAPA), acceleration of global market entry, and development of high value-added products to maximize corporate value and competitiveness.”

Founded in 2001, Youngchang Chemical is a specialized company in the development and production of chemical materials supplied to the semiconductor, display, and eco-friendly energy industries. It is regarded as the first-generation domestic company in semiconductor manufacturing localization and gained market attention starting in 2019 by successfully mass-producing the semiconductor industry material “Photoresist” and replacing imports amid Japan’s export restrictions.

The main products include photoresist, organic hard mask (HT-SOC), slurry, rinsing solution, developer, etchant, and stripper. In the first quarter of this year, sales reached 19.7 billion KRW and operating profit was 1.4 billion KRW, increasing by 36.9% and 229% respectively compared to the same period last year. The first quarter alone achieved 64.7% of last year’s total operating profit.

Youngchang Chemical recently completed the development of a prototype for the “EUV (Extreme Ultraviolet) lithography process rinse” and plans to start mass production in the second half of this year. The EUV lithography process rinse is an essential material that prevents pattern collapse, removes defects, and improves pattern uniformity (LWR) in semiconductor processes, securing yield and expanding process margin.

CEO Lee said, “With the recent increase in EUV processes, interest is growing in this important material that brings productivity improvement and cost reduction,” adding, “The new product ‘EUV lithography process rinse’ will be a key product that can drive the company’s future performance growth.”

In addition, Youngchang Chemical has completed the development of tungsten buffing slurry and ArF immersion photoresist, and is also developing new products such as EUV photoresist.

Lee stated, “We plan to focus on accelerating overseas market entry beyond the domestic market,” and “We will particularly invest heavily in developing new products and materials to improve performance targeting major overseas semiconductor material markets such as the United States, Singapore, and China for next-generation semiconductor production.”

Investment is also concentrated on expanding production capacity (CAPA). The company is currently expanding facilities at its 4th plant located in the Seongju Industrial Complex, Gyeongbuk, and plans to enhance its response capabilities to new orders and overseas market demand expected to increase significantly in the future through the expansion of production facilities for photo materials and wet chemicals.

Meanwhile, Youngchang Chemical’s total number of shares offered is 2.4 million, consisting of 2 million new shares (83.3%) and 400,000 existing shares (16.7%). The desired price range per share is 15,000 to 18,600 KRW. The total expected offering amount is approximately 44.6 billion KRW based on the upper limit of the price band, with about 37.2 billion KRW to be raised through new share issuance.

Demand forecasting for institutional investors will be conducted on the 27th and 28th, with the final offering price to be confirmed on the 30th, followed by general subscription on July 4th and 5th. The company is scheduled to be listed on the KOSDAQ market in mid-July, with Hana Financial Investment serving as the lead underwriter.

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