Doosan Robotics had an impressive IPO with shares jumping more than 100%, making it South Korea’s biggest trading debut so far this year.
Shares in South Korean collaborative robot (cobot) Doosan Robotics jumped significantly from their initial public offering (IPO) price upon their trading debut on Thursday. Doosan Robotics shares began trading at 59,100 won, an increase of more than 127% from the initial IPO price of 26,000 won. At its highest point, Doosan shares climbed to 67,000 won but eventually closed at 51,400 won.
Founded in 2015, Doosan Robotics manufactures collaborative robots that work with humans to perform several tasks. The company’s products can help with tasks like loading, assembling, welding, or pouring coffee. Doosan raised 421.2 billion won ($317 million) in what is currently the largest IPO in South Korea this year.
In a recent interview, Doosan Robotics Chief Executive Officer Ryu Junghoon said the funds will be used to expand the company’s business overseas. Junghoon also told Bloomberg News that proceeds will fund strategic acquisitions. He hinted that Doosan Robotics is looking to acquire a firm with the type of technology that can help robots with mobility. The plan is to manufacture robots to carry items between different points in warehouses and factories. So far, Doosan’s lineup includes 13 robotic arms, each varying reach and payload options. Junghoon also noted that the company’s plan is for collaborative machines like robotic arms instead of humanoid robots.
In addition, Doosan Robotics is working on infusing artificial intelligence (AI) into its machines. Doosan entered an agreement with Microsoft Corp in August to use Azure OpenAI for a GPT-focused control system. This will allow users to instruct robots with voice commands and have the robots figure out a sequence of actions to carry out the request.
Doosan Shares Spike Point to Investor Demand and Market Space
Investor demand in the IPO is impressive and points to a yearning need for the company’s products. According to Eugene Investment & Securities analyst Yang Seung-yoon, Doosan still has access to a large market despite competition from heavyweights like Universal Robots in Denmark and Fanuc in Japan. Seung-yoon believes that labor shortages, increase in labor costs, and a decrease in population, are all factors that may work in Doosan’s favor. Yang said:
“Its good timing for Doosan Robotics to preempt the market by expanding sales and product lineup, as first-comers are likely to be entrenched considering compatibility with existing facilities.”
Last year, Europe, North America, and South Korea each contributed to about 30% of Doosan Robotics’ sales. The regions Doosan operates are expected to contribute more as forecasts predict a market increase. According to Doosan, citing analysis service Markets and Markets, the global robot industry will grow annually by about 36%, from $966 million in 2022 to $2.157 billion in 2025.
Shares in the parent company Doosan Corp are at 91,800 won as of this writing, plunging more than 19% from its previous close at 113,900 won. Despite Doosan Robotics’ impressive debut, Doosan Corp has lost nearly 19% in the last five days. According to MarketWatch data, the stock has also lost 13.8% in the last month. However, the company has gained 10.47% since January and has a market cap of 1.78 trillion won.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
