Dongbang Medical, a specialist in traditional Korean medicine and cosmetic medical devices, is seeing an upward trend early in trading on the KOSDAQ on the 13th, the first day of its listing.
As of 9:06 a.m. on this day, Dongbang Medical is trading at 14,420 won, up 3,920 won (37.33%) from the public offering price of 10,500 won.
Dongbang Medical recorded a competition ratio of 910.14 to 1 in demand forecasting for institutional investors conducted from the 16th to the 22nd of last month. A total of 2,241 domestic and foreign institutions participated. The public offering price was finalized at 10,500 won, the upper end of the desired range (9,000 won to 10,500 won).
The competition ratio for the public offering subscription targeted at general investors, which took place from the 3rd to the 4th of this month, reached 106.3 to 1. Subscription deposits amounted to 418.6 billion won.
Dongbang Medical holds a leading market share of 60-70% in traditional Korean medicine devices, such as acupuncture and cupping therapy products. The company has differentiated itself in terms of quality and production capacity by utilizing its self-developed automated equipment. Additionally, the company has shown growth in the cosmetic medical device sector, such as fillers, by leveraging its technology and experience in traditional Korean medicine devices. In the past four years, revenue in this sector has increased by 34.5%, accounting for about 60% of total revenue last year.
Through this initial public offering (IPO), Dongbang Medical plans to actively utilize the funds raised to expand into global markets, including the United States, Europe, and the Middle East. The company aims to increase the revenue share of the cosmetic medical device sector to 81%, targeting 250 billion won in revenue and a 30% operating profit margin by 2028.
Kim Geun-sik, CEO of Dongbang Medical, said, "With the stable revenue of the traditional Korean medicine device business and the public funding secured through the listing, we will accelerate our expansion into the existing Chinese market and the world's first and second largest cosmetic surgery markets, the United States and Brazil."