Exem's Subsidiary Sinsway to Pursue KOSDAQ Listing... Absorption Merger with IBKS No.17 SPAC

Merger Decision at a Ratio of 1 to 0.2278683
Challenge to Enter KOSDAQ in November

IT performance management specialist Exem's subsidiary Shinsiway is set to actively pursue a public listing through a merger with IBKS No.17 SPAC.

On the 18th, Exem announced the decision to merge its subsidiary Shinsiway with IBKS No.17 SPAC and pursue Shinsiway's listing on KOSDAQ.

The merger price is set at 8,777 KRW per Shinsiway share and 2,000 KRW per IBKS No.17 SPAC share, with a merger ratio of 1 to 0.2278683. Based on company data and external evaluation agency analysis, the enterprise value calculated per share earnings value is 38.3 billion KRW.

Shinsiway, which signed the merger agreement on the 12th, will submit the securities registration statement on July 20. The scheduled merger date is October 11. If all merger procedures proceed as planned, the company can be listed on the KOSDAQ market on November 1.

Exem acquired a 50.24% stake in Shinsiway in July 2015. Founded in 2005, Shinsiway is a data security solution specialist developing and supplying solutions such as DB access control, DB encryption, unstructured file encryption, DB authorization approval, and data change management. It provides products to numerous general enterprises, financial institutions, and public organizations that store and utilize personal and sensitive information. Through continuous R&D investment every year, it has filed and registered 13 patents to date. It is currently developing a SaaS-based integrated DB security product capable of safely managing data in virtual network environments, as well as multi and hybrid cloud environments.

Shinsiway has consistently grown by maintaining positive operating profit and net income every year. Its compound annual growth rate (CAGR) over the past three years based on sales is approximately 16%. Last year, it recorded sales of 9.7 billion KRW. Operating profit and net income increased by 66% and 45%, respectively, during the same period, reaching 2.1 billion KRW and 1.8 billion KRW last year.

This year, Shinsiway expects growth to be driven by the expansion of cloud migration and increased cloud usage in both public and private sectors. Due to the expansion of the data industry and the trend of digital transformation, increasing demand for data security, and rising investment in personal information protection, the domestic DB security market is projected to achieve a five-year CAGR of 15.17% through 2027.

According to data evaluated by an external agency, Shinsiway's sales are estimated to reach 11.8 billion KRW in 2023, 14.2 billion KRW in 2024, and 17.1 billion KRW in 2025, up from 9.7 billion KRW in 2022. Shinsiway plans to improve its financial structure through direct capital increase via listing and secure resources for technology development such as new product development and product advancement.

Jo Jong-am, CEO of Exem, stated, "Since Shinsiway's DB security business and Exem's DB performance management business have demonstrated cooperative synergy effects, Shinsiway will continue its relationship as a key subsidiary of Exem." He added, "With the pursuit of listing, Exem will not only maximize corporate value but also strengthen the global foothold of our integrated SaaS product ‘DataSeeker’ and Shinsiway’s SaaS-based DB security business division."

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