In the first half of the year, DN Solutions, which was noted as a 'big fish' in the initial public offering (IPO) market, is seriously considering withdrawing its listing. This is because the results of the institutional demand forecast fell significantly short of expectations, making it unavoidable to set the offering price at the lower end of the band (indicative offering price range).
According to the investment banking (IB) industry on the 30th, DN Solutions is reported to have decided to move toward withdrawing its listing.
Earlier, DN Solutions conducted a demand forecast targeting institutional investors from the 22nd to the 28th. As a result, participation from overseas institutions was very low, and most orders were concentrated at the lower end of the band. The band is 65,000 to 89,700 won.
An IB industry official said, “Underwriters conveyed to the company that they believe listing at the lower end of the band is possible, but the company seems to be strongly inclined towards 'let’s get the right price.'”
DN Solutions is a subsidiary of DN AUTOMOTIVE and engages in the machine tool business. Its predecessor is Doosan Machine Tools.
The estimated market capitalization based on the offering price could reach up to 5.6634 trillion won. The leading underwriters are Mirae Asset Securities, Samsung Securities, and UBS Securities. Korea Investment & Securities and BofA Merrill Lynch are listed as joint underwriters.