[IPO] SW Steel Tech "Will Leap Forward as a Comprehensive Building Materials Specialist"

"SW Steeltec will secure a leading position in the continuously growing deck plate market and leap forward as a comprehensive building materials company by expanding its product portfolio. After the expansion of the second factory in 2025, we will achieve the number one domestic market share."

Hong Sung-kyun, CEO of SW Steeltec, said this during a press conference held on the 25th at the 63 Building in Yeouido.

Founded in 2015, SW Steeltec is a comprehensive building materials company primarily engaged in high-performance deck plates. Since its establishment, the company has secured a portfolio of three major deck plate products and achieved the second-largest market share in the domestic deck plate market (based on product sales volume), demonstrating rapid growth. Sales revenue, which was 49.4 billion KRW in 2019, reached 100.1 billion KRW last year. Sales for the first half of this year amounted to 63.4 billion KRW, a 31% increase compared to the same period last year. Operating profit rose by 259% to 7.4 billion KRW.

To drive the growth of its rapidly expanding deck plate business, the company plans to secure production capacity by expanding a second factory within the Dongchungju Industrial Complex in addition to its existing Chungju factory. Upon completion of the second factory expansion, monthly production capacity will increase from 300,000㎡ at the current facility to 500,000㎡, an approximately 67% increase, making it the largest scale in the industry. The company plans to complete the factory construction by the third quarter of 2024 and intends to secure part of the funds required for equipment investment through this public offering.

Based on the secured production capacity, the company plans to achieve sales growth through an aggressive sales strategy. The company has long implemented sales and revenue strategies that minimize the impact of the construction market. Instead of relying on construction sales, which are heavily influenced by market conditions, it has increased the proportion of distribution and delivery sales to secure margins, thereby achieving stable sales growth.

In addition to its existing deck plate business, the company plans to achieve higher growth by developing new products such as long-span decks and beam decks. The long-span deck compensates for the short span (less than 5.5m) limitation of existing deck plates by supporting longer spans (6 to 8 meters or more).

Moreover, the company is preparing to develop and produce beam decks, which can be used not only for floor slab materials but also for column structures. Beam decks are products that can replace the conventional beam formwork method used in column structures. The company has completed registration of one patent and three design patents in the beam formwork field. It has secured an OEM partner for customized beam deck design and is preparing to enter this new business.

Through such new product development, the company will be able to conduct sales and construction of beam decks alongside its existing deck plate business. This will allow the company to expand its business scope from floor slab structures to column structures, securing high competitiveness in cost reduction and construction period shortening.

Recently, the application of deck plates has been expanding as building materials that can respond to the increasing proportion of non-residential building investments, rising labor and construction costs, the Serious Accidents Punishment Act, and construction accidents. In response, the company plans to meet the growing demand for deck plates based on growth strategies such as ▲expanding production capacity to diversify sales and ▲developing new products, and intends to use the funds raised through this listing to meet various customer needs.

Hong Sung-kyun, CEO of SW Steeltec, emphasized, "The company was able to achieve rapid growth and high profitability in a short period by adjusting the proportion of construction and distribution sales and efficiently organizing personnel. Through this listing, the company will secure a leading position in the rapidly growing deck plate market in the short term and grow into a comprehensive building materials specialist company through the development of various new products and portfolio expansion in the long term."

SW Steeltec will offer 7 million shares entirely as new shares in this public offering. The expected offering price is 1,200 to 1,500 KRW per share, with a total offering amount of 8.4 to 10.5 billion KRW. The demand forecast will be conducted over five days from the 23rd to the 27th. General subscription will take place on the 1st and 2nd of next month, aiming for a KOSDAQ listing on the 13th of the same month. The lead underwriter is KB Securities.

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