This article appeared on Signal, a capital markets compass, at 2:54 p.m. on August 9, 2026.
Duksan Nepcorse, the first company to pass a preliminary listing review since the establishment of dual-listing guidelines, has launched its initial public offering (IPO) with a higher discount to its fair value. Duksan Nepcorse supplies navigation and anti-jamming solutions, which are core components of advanced weapons systems, to Hanwha Aerospace and LIG Defense & Aerospace (LIG D&A). While the long contract periods and high sales stability characteristic of the defense industry are cited as strengths, the sharply increased volatility in the KOSDAQ market since the middle of this year could serve as a wild card for the offering's success.
According to the Data Analysis, Retrieval and Transfer System on the 9th, Duksan Nepcorse set its desired offering price range (band) at 12,400 to 14,600 won, a discount of 28.67 to 39.42 percent from its per-share fair value of 20,468 won. Justec, which listed in June this year, applied a discount of 22.55 to 34.94 percent, and StradVision applied 20.28 to 31.67 percent. By contrast, Duksan Nepcorse made a bold move by discounting its offering price by up to about 40 percent.
Duksan Nepcorse selected mid-sized defense firm Firstec, along with Hanwha Aerospace and LIG D&A, as its comparison group for corporate value assessment. "Given the nature of the defense industry, where suppliers share performance with their delivery destinations, it is reasonable to select customers Hanwha Aerospace and LIG D&A as the comparison group," an investment banking (IB) industry official said. "The exchange, which has raised its review standards over the past several years, likely made its preliminary approval decision considering the characteristics of the industry."
Duksan Nepcorse's recent revenue has steadily increased, reaching 31.4 billion won in 2023, 45.2 billion won in 2024, and 48.5 billion won in 2025. In the process of calculating fair value, the company projected, based on confirmed supply contracts, that its revenue would grow to 115.3 billion won in 2028, generating net profit of 19 billion won. It subsequently lowered its estimated 2028 net profit to 16.2 billion won, considering the uncertainty of future performance.
However, the recently increased market volatility is cited as a wild card for the IPO's success. In the KOSDAQ market, buy and sell sidecars have been triggered 17 times so far this year. As stock market fluctuations widened and the KOSDAQ market slumped compared to the KOSPI, most companies that conducted IPOs this year received disappointing results after their new listings.
Some observers offer an optimistic outlook, citing that Duksan Nepcorse possesses both fundamentals and growth potential, having passed the technology special listing review while already turning a profit. Duksan Nepcorse posted operating profit of 4.1 billion won last year. "The greatest strength of Duksan Nepcorse is its high sales stability, given the nature of the defense industry where it is difficult to change core suppliers," an IB industry official said. "Although the KOSDAQ market is contracting, there is potential for success given the higher discount to fair value."
