ARKANSAS, Oct 5 (Future Headlines)- Doosan Robotics, a South Korean company known for its innovative robots capable of making coffee and pouring beer, made a spectacular debut on the Seoul stock market, with its shares more than doubling from their initial public offering (IPO) price. The successful IPO, coupled with surging demand for robotics stocks, marks a bright spot in an IPO landscape that has seen many new entrants struggle in recent times.
Doosan Robotics conducted South Korea’s largest IPO this year, raising a substantial 421.2 billion won (approximately $317 million). The shares were priced at the top end of the range, at 26,000 won each, reflecting strong investor interest in the company. Shares of Doosan Robotics opened at an impressive 59,100 won each, representing a remarkable 127% surge from the IPO price. In early trading, they even reached as high as 67,600 won before slightly retracing. This surge in value far outpaced the broader market, which was up 0.6% at the time.
Doosan Robotics specializes in producing collaborative robots, commonly referred to as cobots. These robots are designed to work alongside humans, performing a wide range of tasks, including those in cafes and bars. Their versatility and ability to assist human workers make them increasingly valuable in various industries. The demand for stocks in the robotics sector has been steadily growing, with shares of smaller rival Rainbow Robotics, for example, surging by a remarkable 322% year-to-date. This trend underscores the growing investor interest in companies that are at the forefront of robotics and automation technologies.
Doosan Robotics’ successful IPO stands out in a year when IPO proceeds in South Korea have been significantly lower compared to the previous year. In the first nine months of 2023, South Korean companies raised $1.7 billion, a substantial decline from the $12.7 billion raised during the same period in the previous year. This discrepancy reflects the broader challenges faced by IPOs globally. In 2022, Doosan Robotics achieved a well-balanced distribution of revenue across North America, Europe, and South Korea, with each region contributing approximately 30% of sales. This global footprint positions the company for further growth and diversification.
The global robotics market is poised for significant growth, with forecasts indicating a rise from $966 million in 2022 to $2.157 billion in 2025. The industry is expected to witness an annual growth rate of around 36%, driven by factors such as population decreases, labor shortages, rising labor costs, and reshoring trends in multiple countries.
While Doosan Robotics faces competition from established players like Japan’s Fanuc and Denmark’s Universal Robots, the expanding market offers ample opportunities. Early entrants are likely to establish strong positions, particularly due to compatibility with existing facilities.
As the global demand for automation and robotics technologies continues to rise, companies like Doosan Robotics are well-positioned to capitalize on the burgeoning market opportunities. This successful IPO represents a significant milestone in the company’s journey and underscores the potential for further growth in the robotics sector.
Writing by Alireza Sabet; Editing by Sarah White