Mecaro Co., South Korea’s manufacturer of semiconductor parts, is readying to debut on the country’s tech-heavy Kosdaq market next month with hopes to raise up to 60 billion won ($54.24 million) from initial public offering amidst boom in the semiconductor industry.

“Semiconductors are an essential material in the era of fourth industrial revolution and Mecaro plays an important role in the industry [by providing semiconductor parts],” said Lee Jae-jeong, the company’s chief executive, at a press conference held in Yeouido, western Seoul, on Thursday. “The company is an important pillar in the steadily growing semiconductor industry.”

Mecaro will determine the IPO price after a two-day book building session on November 21 and 22 that will invite institutional investors from home and abroad. Public offering will be available on November 27 and 28 ahead of the listing on December 6. The desired IPO price band is between 25,000 won and 30,000 won per share. Through offering of 2 million shares, Mecaro can earn up to 60 billion won.

Mecaro’s core products are chemical precursors used in thin films deposition in the semiconductor manufacturing process and functional heater block that equally supplies heat energy to silicon wafers. Chemical precursors account for 78.9 percent of the company’s total sales and heater blocks 21.1 percent. Chemical precursors are an essential component in semiconductor production with the market growing an annual average of 20 percent. Market volume is expected to reach $5.72 billion in 2020.

Mecaro that managed to localize production of heater blocks for the first time in Korea has dominated the market for 17 years. It has been a long-term supplier to chip powerhouses Samsung Electronics Co. and SK Hynix Inc.

Mecaro’s sales have grown significantly since 2006 in line with the industry growth. In the first nine months of 2017, the company raised 30.65 billion won in operating income, up a whopping 888 percent from the same period last year. The company’s sales also jumped 57 percent to 75.72 billion won and net profit 698 percent to 23.36 billion won.

By Cho Hee-young and Lee Eun-joo

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