Korea’s Secucen, ALMAC IPOs draw record competition ratio

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Small and mid-cap stocks are gaining traction in South Korea’s initial public offering (IPO) market, with local digital security company Secucen Co. and electric vehicle (EV) aluminum parts maker ALMAC Co. drawing explosive demand among retail investors on Wednesday.

According to multiple sources from the investment bank industry on Wednesday, Secucen saw this year’s highest retail competition ratio of 1,932.1 to 1 on the two days of public subscription on Tuesday and Wednesday.

Secucen also drew explosive investor demand during its book building session on June 14 and 15, with the participation of 1,865 institutions that also led to this year’s highest competition ratio of 1,800.86 to 1.

The IPO is being led by Shinhan Investment & Securities Co.

Secucen, a subsidiary of CompTech Systems Ltd., specializes in digital security and operates digital financial services, security solutions, and consulting businesses, including biometric authentication and electronic signature solutions based on artificial intelligence (AI).

The company’s solution, DocuTrust, offers enhanced security through distributed storage and management of information across financial institutions and the Korea Financial Telecommunications & Clearings Institute instead of storing biometric information on devices.

Secucen is expanding its services to the financial sector such as to insurance companies and banks. Its sales have increased to 39.5 billion won ($30.5 million) in 2022 from 21.9 billion won in 2021 and operating profit to 2.2 billion won from 460 million won during the same period.

ALMAC also drew overwhelming retail demand, hitting a competition ratio of 1,355.6 to 1. Waiting deposits reached 8.46 trillion won, the second-largest this year after GigaVis Co.

ALMAC also held a book building session on June 14 and 15, recording a competition ratio of 1,697.23 to 1. Most of the institutions that took part in the session proposed the highest end of the offering price range.

The offering price was finalized at 50,000 won, which is higher than the proposed 40,000~45,000 won.

NH Investment & Securities Co. is the lead manager.

ALMAC is a 50-year-old company that is dedicated to aluminum extruded materials and parts. It manufactures secondary battery module cases, battery pack frames, and EV platform frames.

The company has the largest market share in the domestic market for aluminum extruded module cases that protect batteries from external impacts.

Secusen and ALMAC will be listed on the secondary Kosdaq market on June 29 and 30, respectively.