Aju Steel gets ready for Kospi IPO of up to $91.3 mn

Aju Steel Co., a mid-sized primary metals supplier for Samsung and LG’s home appliances, is hoping to raise up to 104.8 billion won ($91.3 million) through an initial public offering on the Kospi next month.

The company will float a total of 6,937,500 common shares including 4 million new issues on Aug. 20. It is offering 5.55 million shares to the public at a price band of 12,700 won to 15,100 won. Bookbuilding will take place on Aug. 2-3, and retail subscription for 1,734,375 shares on Aug. 9-10.

Any leftovers from 1,387,500 shares reserved for employees will also made available to the public.

Mirae Asset Securities is the sole bookrunner.

Founded in 1995, Aju Steel manufactures semi-finished metal products with specialty in color steels. Its key clients include world’s major home appliance makers including Samsung Electronics and LG Electronics. The company made 69 percent of last year’s sales from home appliance steel business.

The company in the first quarter earned 14.5 billion won in operating income, generating half of last year’s profit in three months, over sales of 174.0 billion won.

The company plans to use IPO proceeds to expand facility devoted to plates for construction materials, automotive and solar power sectors.

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