Korea’s Nexteel going public this year aims to expand overseas

Nexteel Co. CEO Hong Seong-man announces at the IPO press conference held in Seoul, on Aug. 2. [Courtesy of Nexteel]

South Korean steelmaker, Nexteel Co., has set the goal of diversifying its product portfolio and expanding into global markets with the proceeds from the initial public offering, according to the company’s chief executive officer.

“We will aim to become a leading player in the market of special steel pipes used in renewable energy power plants and expand our presence in the global market with the funds raised through the listing,” said Nexteel CEO Hong Seong-man during a press conference on Wednesday.

Nexteel is planning to join the country’s main Kospi market for the first time this year. The company will hold a two-day bookbuilding session until Thursday and receive public subscriptions on August 9 and 10.

The desired price band is between 11,500 won ($8.8) and 12,500 won, with the total market capitalization of 325 billion won based on the highest-end price.

The IPO adviser is Hana Securities Co.

“We will expand our business primarily in the green energy sector in the domestic market, including the rapidly growing offshore wind power,” Hong said. “Overseas, we’ve established joint ventures, particularly in the U.S., to produce and expand our product supply locally. We will aim to further expand our business next year to other markets, including Canada, Algeria, Egypt, and Japan,” Hong said.

Nexteel is a steel pipe manufacturing company founded in 1990. The company has seen growth in recent years with the rise of eco-friendly energy projects.

Last year, Nexteel posted record earnings, with 668.4 billion won in sales and 181.3 billion won in operating profit, which is up 76.4 percent and 999.7 percent, respectively, compared to 2020.