Corporate Logo(source: cksolution.co.kr)
On the 7th, CK Solution, a specialist in dry rooms for secondary batteries, held an IPO press conference in Yeouido, Seoul, where it outlined its business strategy and vision post-listing on the KOSPI.
An Geun-pyo, Executive Director of CK Solution, stated, "With our expertise in dry rooms for secondary batteries, we are solidifying our position in the global market. Despite potential challenges such as higher tariffs following the U.S. election, we already have a subsidiary and factory in the U.S., which presents CK Solution with new opportunities."
Founded in 2004, CK Solution utilizes its technical foundation in refrigeration and air conditioning to deliver dry room systems, a crucial component in secondary battery manufacturing. Dry rooms are highly dehumidified spaces used to reduce defects in advanced production lines.
CK Solution has leveraged its technological edge to secure LG Energy Solution(373220), Samsung SDI(006400), and SK On as clients. The company has designed a system that maximizes space efficiency by reducing the number of dehumidifiers needed through localized dehumidification. Its proprietary “super hybrid” technology also cuts power usage, and it is the only Korean company to source dehumidification rotors from Japan's Nichias.
The company is expanding globally with subsidiaries in the U.S., Canada, Mexico, Brazil, Poland, and Malaysia and is enhancing manufacturing processes to broaden its client base, including materials companies like L&F(066970), POSCO Future M(003670), and SK IE Technology(361610).
Although some predict a slowdown in the secondary battery industry due to Trump’s re-election, An emphasized that the U.S. election could instead provide CK Solution with new business opportunities. "If the Inflation Reduction Act(IRA) is scaled back under Trump, the cost competitiveness of Korea’s three major battery makers could weaken, forcing increased production in the U.S. Given our U.S. production facilities, this could serve as a further advantage for CK Solution," An explained.
CK Solution's financials show an upward trend. In 2022, it achieved consolidated revenue of 215.3 billion won and an operating profit of 17.7 billion won. While revenue fell 20.1% year-over-year due to investment delays from battery makers, operating profit turned positive, with average annual revenue growth of 39% over the past seven years.
The company is also diversifying into advanced sectors, including clean rooms for semiconductors and biotechnology, and HVAC for data centers. Recently, it completed technical verification for semiconductor super clean rooms and is expanding orders in the biotech clean room market. CK Solution is currently in talks with LG Uplus(032640) to construct a data center in Paju.
Through the IPO, CK Solution plans to issue 3,145,000 shares at a price range of 15,700 to 18,000 won, with a maximum offering amount of 56.6 billion won. Institutional investor demand forecasting is set for November 4–8, followed by the general subscription on November 13–14. CK Solution is expected to list on the KOSPI on November 25, with NH Investment & Securities serving as the underwriter.
Corporate Logo(source: cksolution.co.kr)
On the 7th, CK Solution, a specialist in dry rooms for secondary batteries, held an IPO press conference in Yeouido, Seoul, where it outlined its business strategy and vision post-listing on the KOSPI.
An Geun-pyo, Executive Director of CK Solution, stated, "With our expertise in dry rooms for secondary batteries, we are solidifying our position in the global market. Despite potential challenges such as higher tariffs following the U.S. election, we already have a subsidiary and factory in the U.S., which presents CK Solution with new opportunities."
Founded in 2004, CK Solution utilizes its technical foundation in refrigeration and air conditioning to deliver dry room systems, a crucial component in secondary battery manufacturing. Dry rooms are highly dehumidified spaces used to reduce defects in advanced production lines.
CK Solution has leveraged its technological edge to secure LG Energy Solution(373220), Samsung SDI(006400), and SK On as clients. The company has designed a system that maximizes space efficiency by reducing the number of dehumidifiers needed through localized dehumidification. Its proprietary “super hybrid” technology also cuts power usage, and it is the only Korean company to source dehumidification rotors from Japan's Nichias.
The company is expanding globally with subsidiaries in the U.S., Canada, Mexico, Brazil, Poland, and Malaysia and is enhancing manufacturing processes to broaden its client base, including materials companies like L&F(066970), POSCO Future M(003670), and SK IE Technology(361610).
Although some predict a slowdown in the secondary battery industry due to Trump’s re-election, An emphasized that the U.S. election could instead provide CK Solution with new business opportunities. "If the Inflation Reduction Act(IRA) is scaled back under Trump, the cost competitiveness of Korea’s three major battery makers could weaken, forcing increased production in the U.S. Given our U.S. production facilities, this could serve as a further advantage for CK Solution," An explained.
CK Solution's financials show an upward trend. In 2022, it achieved consolidated revenue of 215.3 billion won and an operating profit of 17.7 billion won. While revenue fell 20.1% year-over-year due to investment delays from battery makers, operating profit turned positive, with average annual revenue growth of 39% over the past seven years.
The company is also diversifying into advanced sectors, including clean rooms for semiconductors and biotechnology, and HVAC for data centers. Recently, it completed technical verification for semiconductor super clean rooms and is expanding orders in the biotech clean room market. CK Solution is currently in talks with LG Uplus(032640) to construct a data center in Paju.
Through the IPO, CK Solution plans to issue 3,145,000 shares at a price range of 15,700 to 18,000 won, with a maximum offering amount of 56.6 billion won. Institutional investor demand forecasting is set for November 4–8, followed by the general subscription on November 13–14. CK Solution is expected to list on the KOSPI on November 25, with NH Investment & Securities serving as the underwriter.