Duksan Nepcorps (266690), the first company approved as an exception to South Korea's dual-listing restrictions, surged more than 96% above its offer price during its trading debut on the KOSDAQ.
The stock climbed as high as 28,700 won on the 30th, up 96.58% from its offer price of 14,600 won. It later pared gains, trading at 23,100 won as of 9:22 a.m., still 58.22% above the offer price.
The listing drew attention as the first exception granted after financial regulators overhauled rules to ban dual listings in principle while allowing exceptions. Under the Duksan Group structure, unlisted Duksan Holdings sits at the top, followed by listed Duksan Hi-Metal, with Duksan Nepcorps beneath it.
After filing for a preliminary listing review in November last year, the company's listing prospects became uncertain when the dual-listing guidelines were issued while it awaited the outcome. The process regained momentum after parent company Duksan Hi-Metal moved to distribute its stake in Duksan Nepcorps to minority shareholders as an in-kind dividend and secured a special resolution at an extraordinary shareholders meeting. The Korea Exchange approved the preliminary listing review in July this year.
A specialist in navigation systems for special-purpose applications, Duksan Nepcorps was founded in 2012 as Nepcorps and took over Hanyang Navicom's defense business the following year, developing and manufacturing navigation and anti-jamming equipment. It adopted its current name in 2021 after Duksan Hi-Metal acquired a majority stake.
Revenue reached 48.5 billion won last year and operating profit 4.1 billion won, up 7.2% and 103.6% from a year earlier, respectively. By customer, Hanwha Aerospace accounted for 34% of revenue, LIG Defense & Aerospace 33% and Hyundai Rotem 15%. The company has also supplied satellite navigation receivers for the first through fifth launches of Nuri, South Korea's homegrown space rocket.
The company said it has developed in-house core technologies across the full range of navigation fields, including satellite, inertial and integrated navigation as well as anti-jamming, and provides services from design through development, production and testing. It has built a supply record across a range of operating environments, including ground and guided weapons as well as drones, aircraft, launch vehicles and satellites.
"Our products are set to be installed in next-generation programs such as the Korean-style Iron Dome and counter-small drone systems," CEO Hwang Tae-ho said at a press briefing held at the Conrad Hotel in Seoul's Yeouido district on the 14th of this month. "Once full-scale mass production of next-generation products begins, our top-line growth will also accelerate."
