Korean robotics solutions company CMES to go public this year

CMES CEO Lee Sung-ho presented the company’s vision during an IPO briefing held at the Conrad Hotel in Yeongdeungpo-gu, Seoul, on the 23rd. (CMES)

South Korean robotics solutions company CMES Inc. plans to go public later this year, with an aim to become a leader in the robotics market with its three-dimensional (3D) data and artificial intelligence technologies.

“We are the best at acquiring 3D data and make the most accurate decisions based on it,” said CMES Chief Executive Officer Lee Sung-ho, during a press conference in Seoul on Monday. “We also implement precise robotic movements that are unmatched globally.”

The press conference was held ahead of the company’s initial public offering (IPO).

Founded in 2014, CMES has developed 3D vision technology, serving as a robot’s eyes, AI technology that acts as its brain, and robotics technology that generates movement based on AI assessments.

The company’s robotic and 3D inspection solutions are supplied to top-tier clients across various industries, including logistics, automotive, and electronics.

Early investors in CMES include SK telecom Co., with strategic partners like Coupang Inc. and GS Retail Co. joining later.

“Our goal was clear: to mass-produce this technology beyond our labs,” Lee said.

He pointed out that only around 2 percent of all manufacturing sites currently deploy traditional robots, which mainly handle standardized tasks. CMES aims to replace flexible tasks now performed by humans, boosting robot adoption rates.

The company projects to raise 12.3 billion won ($9.2 million) in sales this year, up 60 percent from last year‘s 7.6 billion won.

However, as of August, cumulative sales stood at 2.7 billion won.

Lee noted that due to the company’s contract-based model, revenue is not recognized until the solution is delivered, adding that this year‘s order backlog is significantly larger than last year’s, suggesting that the company is on track to meet its annual target.

For its IPO, CMES plans to issue 2.6 million shares, of which 88.5 percent will be newly issued, with 300,000 existing shares.

The desired IPO price range is between 20,000 and 24,000 won per share, with a total fundraising target between 52 billion and 62.4 billion won.

A bookbuilding session will be held from September 30 to October 8 and public subscription on October 15 and 16.

Samsung Securities Co. and Eugene Investment & Securities Co. will manage the offering.