[IPO] JoStem "Leap to a Global Convergence Core Tech Solutions Company"

[Asia Economy Reporter Jang Hyowon] Semiconductor contamination control solution company Jeostem is knocking on the door of the KOSDAQ market. Based on the know-how accumulated in the semiconductor industry, Jeostem plans to expand into the display and solar energy markets.

On the 13th, Jeostem held an IPO press conference at the Federation of Korean Industries building in Yeouido, announcing its plans and vision after listing.

Founded in 2016, Jeostem is a leading small and medium-sized enterprise ranked No. 1 globally in semiconductor contamination control solutions. Jeostem has been selected as one of the top 100 small and medium-sized enterprises in materials, parts, and equipment, and recognized as an excellent corporate research institute by the Ministry of Science and ICT. The company holds industry-leading design technology and 101 patents, securing global top-tier IDM companies as its clients.

Jeostem’s N2 purge system is a solution that equips and applies a nozzle, a core technology, to LPMs used for semiconductor wafer transport and storage.

CEO Lim Youngjin of Jeostem explained, “As semiconductor processes have recently become more miniaturized, device losses due to humidity during processing have occurred, increasing the importance of the N2 purge system that minimizes device loss. While existing LPMs have seen increased humidity due to the miniaturization of semiconductor processes, Jeostem’s N2 purge system injects nitrogen into the wafer transport container to reduce surface humidity to below 5%, improving wafer quality by controlling the internal environment of the FOUP.”

Jeostem maintains stable sales growth and high profit margins based on its technological competitiveness. The compound annual growth rate of sales from 2016 to 2021 is about 35%, with last year’s sales reaching 44.8 billion KRW and operating profit at 7.2 billion KRW. Through cost competitiveness and technological improvements, the operating profit margin has been maintained at an average of 16?18% over the three years from 2019 to 2021.

Additionally, Jeostem is expected to directly benefit from new factory investments by IDM companies in the future. In fact, new orders in the first half of 2022 increased by 15% compared to the previous year. Furthermore, sales are expected to expand further through market preemption with the development of Jeostem’s second- and third-generation new products.

Going forward, Jeostem plans to expand its product portfolio into the display and solar energy industries based on the technology it has secured so far in the semiconductor industry. Through Jeostem’s convergent design know-how, products such as display vacuum environment transport equipment and PECVD products for solar deposition have already been developed, and OLED high-vacuum equipment has been jointly developed and verified with major display companies.

CEO Lim said, “Through this KOSDAQ listing, we will expand our business into advanced industries such as display, solar energy, and secondary battery material equipment industries based on our unique technology, securing new growth engines. We will leap forward as a global No. 1 convergent core tech solution specialist company.”

Meanwhile, Jeostem’s total number of shares offered is 1.72 million, with a public offering price band of 9,500 to 11,500 KRW, and the public offering amount is approximately 16.3 to 19.8 billion KRW. Demand forecasting for institutional investors will be held until the 14th, and subscription will take place on the 19th and 20th. The lead manager is Mirae Asset Securities.

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