This article was published on Aug. 19, 2025, at 3:14 p.m. on the ChosunBiz MoneyMove site.
KDB Industrial Bank and private equity fund (PEF) manager Eugene Private Equity (Eugene PE) sold about half of its stake in the air-cooled heat exchanger company DTS, which they acquired last month. This move is seen as an effort to distribute the largest shareholder's equity and confirm market demand for the corporation ahead of its initial public offering (IPO).
According to investment banking (IB) industry sources on the 19th, DTS recently sold about 21% of its equity to securities companies and PEF managers. The Industrial Bank and Eugene PE acquired the management rights of DTS held by New Lake Alliance and DASAN Networks last month. During this process, they injected an additional 15 billion won into DTS to secure a 43% stake.
In this share sale process, DTS was recognized with a corporate value of about 200 billion won. With the distribution of equities completed, DTS plans to resume its IPO in the second half of the year, with DAISHIN SECURITIES serving as the underwriter. DTS had prepared for an IPO by 2023 but had temporarily halted the process due to the high proportion of share sales. With related issues resolved, a faster pace for the listing is expected.
An IB industry source noted, "PEF managers have fund expirations, so they ultimately must sell the companies they invested in, but high levels of existing share sales during the listing process are not preferred by the Korea Exchange," adding, "It is often the case that listings are postponed due to the high proportion of existing share sales."
DTS, founded in 2000, specializes in engine after-treatment devices. It primarily engages in the design, manufacture, and sale of special heat exchangers. Its headquarters is located in Gunsan, North Jeolla Province, and it changed its name from Tongyang TS to DTS in 2014. The operating profit, which was at 13.3 billion won in 2023, surged to 24 billion won last year.
Investors participating in the share acquisition are reportedly focused on the air-cooled heat exchangers produced by DTS, as the related market is experiencing explosive growth and the stock prices of related companies are being reassessed. SNT Energy, which operates a similar business, recorded an operating profit of 27.3 billion won in the second quarter, a 45% increase compared to the same period last year, and reached its upper limit on the day of its earnings announcement, exceeding a market capitalization of 1 trillion won.
An IB industry source stated, "DTS is a major player in the air-cooled heat exchanger market following SNT Energy," adding, "With the increasing demand for heat exchangers in data centers due to advancements in artificial intelligence (AI), the stock prices of related companies like Hantech are receiving favorable evaluations in the market, thereby attracting investors' interest."