[IPO] Susan Industry Listed on KOSPI... "13 Years Consecutive Dividends, Will Continue"

Han Bongseop, CEO of Susan Industry.

[Asia Economy Reporter Jang Hyowon] “We will continue to provide dividends at the market average level even after listing on the KOSPI.”

On the 13th, Han Bongseop, CEO of Susan Industry, held a press conference in Yeouido, Seoul, for the KOSPI listing and made this announcement. Susan Industry has paid dividends for 13 consecutive years until last year. For the past three years, it has consistently paid 4 billion KRW in dividends regardless of profits.

Established in 1983, Susan Industry is a comprehensive maintenance service company for power plants that improves the operating rate of various power plants including nuclear, thermal, and renewable energy, and prevents unexpected shutdowns. It provides services such as routine maintenance, planned preventive maintenance, and equipment operation through 24 power plant maintenance offices nationwide.

As of last year, the sales ratio by business division was 48.7% nuclear, 31.1% thermal, 10.8% renewable, and 9.4% others. Its subsidiaries include ‘Susan E&S,’ which performs instrumentation maintenance and construction for power plants, and ‘SH Power,’ which operates in the renewable energy business.

Last year, on a consolidated basis, sales reached 294.1 billion KRW and operating profit was 51.3 billion KRW, increasing by 11.5% and 54.1% respectively compared to the previous year. The average annual growth rates of sales and operating profit over five years were 7.2% and 13.7%, respectively. The operating profit margin rose from 13.8% in 2017 to 17.4% last year. In the first quarter of this year, sales of 67 billion KRW and operating profit of 13 billion KRW were recorded, continuing the growth trend.

CEO Han Bongseop explained, “Except for KEPCO KPS, Susan Industry is the only company qualified for sole maintenance contracts,” adding, “Our strength lies in having balanced maintenance experience across all power generation sectors from nuclear to renewable energy.”

Going forward, Susan Industry plans to enter the Small Modular Reactor (SMR) market. Its subsidiary Susan E&S manufactures the core equipment, the Nuclear Power Plant Operation Control System (MMIS), which performs safety functions within reactors. Susan E&S has supplied MMIS installed in domestic large reactors (APR1400) such as Shin Hanul Units 1 and 2 and Shin Kori Units 5 and 6.

CEO Han said, “The application of MMIS will expand from large reactors to SMRs,” and added, “The global SMR market is expected to grow to about 620 trillion KRW by 2035, and only a few countries including South Korea are capable of developing and exporting SMRs, so we expect to receive significant benefits.”

Additionally, Susan Industry plans to invest in domestic and overseas power plants using the proceeds from the public offering. Of the 150 billion KRW raised through this offering, 110 billion KRW will be allocated for power generation business investments. Domestically, investments will be made in renewable energy sectors such as pyrolysis oil business and biomass gasification power generation, while overseas investments will target privatization of power plants in the Philippines and Nigeria, and biomass power generation projects in Vietnam.

CEO Han stated, “We plan to use the public offering funds for equity investments in domestic and overseas energy-related power generation businesses, overseas market expansion, new business development, and research and development (R&D) expansion,” and added, “Through this, we will continue to grow as the world’s leading power plant service company.”

Meanwhile, the total number of shares offered by Susan Industry is 5,715,000. Among these, 1,429,000 shares are existing shares sold by Chairman Jeong Seokhyun of Susan Group and related parties, amounting to approximately 50 billion KRW based on the lower end of the offering price. The offering price band per share is 35,000 to 43,100 KRW. Demand forecasting will be conducted on the 14th and 15th to finalize the offering price, followed by a general subscription on the 20th and 21st. Samsung Securities is the lead underwriter, and Mirae Asset Securities is participating as a co-manager. The KOSPI listing is scheduled for the 1st of next month.

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