“We have developed next-generation hybrid advanced materials technology and the only domestic titanium production technology. Starting this year, we plan to fully launch new businesses in information technology (IT), autonomous driving, and robotics based on our titanium production technology.”
On the 13th, Song Jun-ho, CEO of PIM KOREA, said at a press conference on the initial public offering (IPO) held at the 63 Building in Yeouido, Seoul, “We will start producing titanium materials in Korea this year and expand its application to high value-added businesses after securing the upstream value chain.” PIM KOREA is advancing its previous listing from the KONEX market to the KOSDAQ market.
Established in 2001, PIM KOREA is a company that possesses metal injection molding (MIM) technology. MIM is a process that uses metal powder to inject and sinter metal parts, as opposed to traditional methods like casting or machining. It can mass-produce complex and precise metal parts using various materials such as titanium and aluminum. The company also has a heterogeneous injection technology that mixes two new materials. Typically, heterogeneous injection involves plastics, but PIM KOREA is the only company in Korea to have developed metal heterogeneous injection technology.
Song noted, “We have developed hybrid advanced materials technology and titanium production technology in-house, and through continuous research and development, we have built entry barriers in the MIM field,” adding, “We have successfully secured customers not only from global electric vehicle companies but also from IT and autonomous driving businesses such as Samsung Electronics and LG Innotek.”
PIM KOREA is committed to diversifying the application fields of MIM technology into areas such as autonomous driving and robotics, and is ramping up its titanium-based business to accelerate growth. To achieve this, the company plans to use the funds raised this time to expand its IT-exclusive line at its production base in Vietnam. Currently, both electric vehicle parts and IT parts are produced on the same line, but the aim is to expand capacity by enhancing the dedicated line for IT parts.
To enter the robot sector, where demand for ultra-precision materials is high, PIM KOREA has recently begun the preliminary development of materials for robotic gear reducers. Discussions are currently underway with global companies regarding product supply. The company is also jointly developing gear products for logistics robots with domestic automakers.
Jeong Jae-ok, executive director at PIM KOREA, emphasized, “We are continuing to grow by securing various global conglomerates as clients based on our top-tier technology and mass production capabilities,” adding, “We will build IT and autonomous driving production facilities at our domestic production base and expand the IT-exclusive production line at our factory in Vietnam to fully launch new business revenues.”
PIM KOREA will begin demand forecasting for institutional investors starting from the 17th. It has been reported that the company received generally favorable evaluations at a corporate briefing for institutional investors. The company's current market capitalization, which stands at around 100 billion won, is viewed positively, especially considering that it has lowered its valuation by about half. Notably, it has surpassed a 10% operating margin over the past two years (2023-2024), which is rare for an automotive parts company. Last year, its consolidated revenue was 38 billion won.
However, there are concerns in the market regarding potential overhang (the possibility of selling pressures). On its listing day, PIM KOREA will have 2,676,376 shares available for distribution, accounting for 44.57% of the total number of shares planned for listing. Most institutional investors have not established lock-up agreements. Of the 23.4% equity held by financial investors, including venture capital (VC), shares excluding 5.01% can be sold starting on the listing day.
PIM KOREA's total public offering shares amount to 1.3 million, with a desired public offering price range of 9,300 to 11,200 won. Based on the upper end of the band, the expected market capitalization after listing is around 67.2 billion won. PIM KOREA plans to confirm the final public offering price through demand forecasting for institutional investors and will conduct public subscription for general investors on the 25th and 26th of this month. The scheduled listing date on the KOSDAQ is the 4th of next month. The listing underwriter is IBK Securities.