Youngchang Chemical Confirms Public Offering Price at Upper Limit of 18,600 Won... Records 1,616 to 1 Competition Rate

[Asia Economy Reporter Jang Hyowon] Youngchang Chemical (CEOs Seongil Lee and Seunghoon Lee), which is pursuing a KOSDAQ listing, has finalized its public offering price at 18,600 KRW.

Youngchang Chemical, a specialist in ultra-precision industrial chemical materials for semiconductors and displays, announced on the 30th that it conducted a demand forecast for institutional investors on the 27th and 28th and set the public offering price at the top end of the desired price band, 18,600 KRW. The initial desired price range was from 15,000 KRW to 18,600 KRW.

According to Hana Financial Investment, which is managing Youngchang Chemical’s KOSDAQ listing, a total of 1,702 domestic and international institutions participated in the demand forecast, recording a competition rate of 1,616 to 1. Among the participating institutions, 99.3% offered prices at or above the top end of the price band (including those who did not specify a price), and 60.3% of them proposed prices exceeding the top end.

Seunghoon Lee, CEO of Youngchang Chemical, said, “We deeply appreciate the many institutions that actively participated in the demand forecast, believing in our technology, market potential, and growth prospects.” He emphasized, “The company will further strengthen its technological competitiveness and accelerate overseas market expansion, targeting the rapidly growing front markets at the core of the 4th industrial revolution such as 6G, artificial intelligence (AI), metaverse, and autonomous vehicles, to leap forward as a global total chemical solutions company leading the semiconductor, display, and eco-friendly energy industries.”

The total number of shares offered by Youngchang Chemical is 2.4 million, with a total public offering amount of approximately 44.6 billion KRW based on the finalized price. Through issuing new shares (83.3%), it will raise 37.2 billion KRW, which will be used for facility expansion such as production equipment and research and development. In particular, the company plans to focus investments on expanding production capacity (CAPA) of core products such as photo materials and wet chemicals, advancing technology, and developing cutting-edge, high-quality new products.

Public subscription for general investors will be held over two days on July 4 and 5. The company plans to list on the KOSDAQ market in mid-July, with an expected market capitalization of approximately 188.1 billion KRW based on the public offering price after listing.

Founded in 2001, Youngchang Chemical is a specialized company developing and producing chemical materials supplied to the semiconductor, display, and eco-friendly energy industries. Its main products include photoresist, organic hard mask (HT-SOC), slurry, rinsing solution, developer, etchant, and stripper.

Recognized as a first-generation domestic company in semiconductor manufacturing, Youngchang Chemical gained market attention starting in 2019 by successfully localizing the mass production of the semiconductor industry material “photoresist,” replacing imports amid Japan’s export restrictions. Recently, it completed the development of a prototype for “EUV (extreme ultraviolet) lithography rinsing solution” and plans to begin mass production in the second half of this year, becoming the first in the industry to localize this product.

Based on its high-quality competitiveness, Youngchang Chemical supplies various products to leading domestic and international companies in semiconductor and display fields. With the front markets expected to expand further, the company’s strategy is to increase production capacity to sufficiently respond to new orders and overseas market demand. Currently, it is expanding the facilities of its 4th factory located in the Seongju Industrial Complex, Gyeongbuk.

Additionally, the company has established and operates local sales offices in the United States and Singapore, targeting major overseas semiconductor material markets such as the U.S., Singapore, and China to accelerate global market entry. It plans to gradually expand its global market share by increasing supply to overseas production lines of existing customers and securing new overseas customers.

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