Almek Submits Securities Registration Statement for KOSDAQ Listing... 45 Billion Won Public Offering

Almek (CEO Shin Sang-ho), a global aluminum parts specialist for electric vehicles, announced on the 18th that it has submitted a securities registration statement to the Financial Services Commission to list on KOSDAQ and is officially promoting its initial public offering (IPO).

Almek's total number of shares offered is 1 million, all of which are newly issued shares. The desired price range per share is from 40,000 KRW to 45,000 KRW. The company will conduct a demand forecast for institutional investors on June 14 and 15, finalize the public offering price on the 16th, and accept general subscriptions on June 20 and 21. The total expected amount to be raised is 45 billion KRW based on the upper limit of the price band, and the company plans to be listed on the KOSDAQ market by the end of June. The lead underwriter is NH Investment & Securities.

In line with the growth of the global electric vehicle market, Almek has invested more than 60 billion KRW over the past few years in its Miryang and Sacheon factories, focusing on continuous expansion of production capacity. The funds raised through the listing will also be primarily invested in expanding production facilities for newly secured orders. The company is preparing to operate a new 7,500-ton extrusion facility by 2024 and aims to operate two extrusion facilities, including a 4,500-ton one, in Alabama, USA, with an investment of 60 billion KRW by 2026.

Almek is an aluminum extrusion material and parts specialist with 50 years of experience, originally established as Gyeongnam Metal in 1973. Since its time as an affiliate of the Daewoo Group, it has led aluminum extrusion material technology related to electric vehicles, having developed Korea's first dedicated electric vehicle platform (DEV).

The company's main products are dedicated to electric vehicles, including ▲battery (secondary battery) module cases ▲battery pack frames ▲electric vehicle platform frames. In particular, it holds the number one domestic market share in aluminum extrusion module cases that protect batteries from external shocks. Major customers include global EV battery manufacturers and overseas electric vehicle companies such as LG Energy Solution, SK On, GM, RIVIAN, and LUCID.

Almek's greatest competitive advantage lies in its ultra-precision extrusion technology and crash absorption material (Crash Alloy) technology applied to automotive safety parts. It is the only company in Korea certified by global automobile companies for high-strength crash absorption materials, and based on this technological capability, it has built strong partnerships and secured a competitive edge in the market.

Last year, on a consolidated basis, the company achieved sales of 156.7 billion KRW and an operating profit of 11.3 billion KRW, marking an 89.3% increase in sales and a turnaround to operating profit compared to the previous year. Although the company’s profitability was affected in the past by development costs for electric vehicle battery parts and a sharp rise in global logistics costs in 2021, stable profitability is expected going forward due to technology stabilization and completion of supply contract condition changes. The company anticipates maintaining high growth by responding to global electric vehicle parts demand through secured production capacity and additional investments.

According to energy market research firm SNE Research, the global electric vehicle market is expected to grow at an average annual rate of 24%, expanding from 10 million units last year to 55 million units by 2030. Accordingly, related industries including secondary batteries and materials and parts are also expected to experience significant growth annually.

Shin Sang-ho, CEO of Almek, stated, “We will actively respond to the rapidly increasing market demand by strengthening our technology and production capacity targeting the high-growth domestic and international electric vehicle markets, maximizing corporate value. Through the KOSDAQ listing, we will leap forward as a global company leading the electric vehicle and secondary battery materials and parts industries.”

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