Shares of DN AUTOMOTIVE are up about 4% at the start of trading on the 11th. The rise in stock price is attributed to the announcement by a U.S. activist fund of its plans to acquire equity.
As of 9:16 a.m. on the 11th, DN AUTOMOTIVE is trading at 20,700 won, up 850 won (4.28%) from the previous day's closing price in the securities market. During the trading session, the stock hit a high of 22,400 won, a 12.84% increase from the previous day.
The surge in buying interest is attributed to Blue Orca Capital, which operates a U.S. activist fund, publicly stating through a report that it would acquire equity in DN AUTOMOTIVE.
Blue Orca Capital believes that DN AUTOMOTIVE will enhance its asset value through the initial public offering (IPO) of its subsidiary DN Solutions (formerly Doosan Machine Tools). Blue Oak noted that "if you aggregate the valuation by segment, the IPO of DN Solutions alone could yield a revenue of 194% to 294%."
DN Solutions has established itself as the number one player in the domestic machine tool market and is the third-largest company in the global metal cutting machine market. DN AUTOMOTIVE acquired DN Solutions from MBK Partners in 2022.
DN Solutions is targeting a KOSPI listing in the first half of the year, with demand forecasting for institutional investors at the end of this month and a public subscription early next month.