This article was published on Jan. 9, 2025, at 4:54 p.m. on the CHOSUNBIZ MoneyMove website.
AUFlex, a company specializing in the manufacturing of foldable smartphone hinges, is making another attempt to list on the KOSDAQ. This is due to the rapid growth of the foldable smartphone market as Apple has decided to enter the foldable phone market, raising expectations for the growth of the hinge market, which is considered a core technology.
According to the financial investment industry on the 9th, AUFlex recently completed the basic due diligence for an underwriter for its listing and has determined to pursue a special listing on the KOSDAQ market in the materials, parts, and equipment sector. The company aims to apply for a technology assessment later this month and plans to be listed within the year, with Korea Investment & Securities acting as the lead underwriter.
Founded in August 2010, AUFlex is a manufacturer of hinges, a key component in foldable phones. The company gained market attention after developing a structure that mounts the hinge under the foldable phone panel, a world first. It is also well-known as a collaborator in the development of foldable display technology with Samsung Display.
This is AUFlex's second attempt to list on the KOSDAQ market. In 2022, it selected DB Financial Investment as its lead underwriter and passed the technology assessment, but halted subsequent procedures. This was due to not being included as a supplier for Samsung Electronics' foldable phone hinges and the overall weakening of the stock market.
The company is expected to leverage the rapid growth of the foldable smartphone market as a key strategy for its KOSDAQ listing. In particular, as American Apple has confirmed its entry into the foldable smartphone market, which is led by Samsung Electronics, the rapid growth of the foldable phone market is anticipated.
Market research firm TrendForce projected that global foldable phone shipments will steadily increase from 18.3 million units in 2023 to 70 million units by 2027. TrendForce noted, "Despite the recession in the smartphone market, foldable phones are showing a unique growth trend."
In particular, Apple has also filed patents related to foldable iPhones, with launch timings expected around 2026. Samsung Display is mentioned as a display supplier, and AUFlex, being a development partner, is also receiving market expectations.
Expectations for venture capital (VC) investment recovery are also growing. Currently, multiple VCs, including Partners Investment, Samsung Venture Investment, and SJ Investment Partners, are listed as shareholders. In particular, Partners Investment holds more than 10% equity using two venture funds.
The market capitalization for the listing is mentioned to be around 100 billion won. In this scenario, VCs are expected to earn at least twice their investment. When AUFlex issued a convertible bond (CB) worth 2 billion won in December 2022, the company valuation was set at around 50 billion won.
Meanwhile, AUFlex is also working on expanding its hinge production base. Last year, it signed a joint venture agreement with an Indian metal injection molding (MIM) manufacturer to produce hinge modules. The plan is to establish a joint venture in India and build an automated assembly line for the hinge modules.