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Smartphone-use magnet manufacturer Novatech to debut on Kosdaq on Nov. 2

2018.10.17 09:47:48 | 2018.10.17 09:48:16
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Novatech Co`s President CEO Oh Choon teak

Novatech Co`s President CEO Oh Choon teak

Novatech Co., South Korea’s manufacturer of special magnets used in smartphones, will go public on the country’s secondary Kosdaq market next month with hopes to raise capital to expand business.

According to multiple sources from the investment bank industry on Tuesday, Novatech plans to issue new shares at a price band of between 12,500 won ($11.09) and 16,500 won apiece. The company will hold a two-day book building session until Oct. 17 and receive subscription from retail investors on Oct. 23-24. The shares will debut on Nov. 2. The lead underwriter is Hana Financial Investment Co.

Novatech - founded in 2007 - manufactures shield magnets that intentionally redirect the magnetic force lines away to enhance efficiency. Magnetic forces work on N-S symmetry and it is difficult to block just one direction of the forces.

Novatech owns patent and original technology that combines magnet and ferromagnetic substances to block magnetic forces of unneeded direction and amplifies other needed direction. The magnets are used as sensors attached to smartphone protective covers.

The company expects a significant boost in sales given that there has been a recent rise in demand for magnets applied to smartphones. A model of Samsung Galaxy Note series, for example, was equipped with only one magnet but its latest model is loaded with seven.

Sales of Novatech jumped from 4.5 billion won in 2014 to 21.3 billion won in 2017. Novatech plans to use the proceeds from the IPO to expand business to other sectors including automobile electronic device and energy development.

By Cho Hee-young and Lee Eun-joo

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]

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