Livsmed, debuting on the KOSDAQ with a market capitalization of 1 trillion won, signaled confidence in improving results ahead of its listing.
Chief Executive Lee Jeong-ju of Livsmed said at an IPO press briefing held at the Fairmont Ambassador in Yeouido on the 5th, "Starting next year, we will increase the number of U.S. hospitals using our products by 100 each year," adding, "We also expect to turn operating profit to the black starting next year."
Lee added, "Starting with achieving 150 billion won in revenue next year and turning operating profit to the black, we will steadily grow the company."
Livsmed develops surgical tools, including "ArtiSential," a laparoscopic surgical instrument. It has also built a diverse portfolio that includes the vascular sealing device ArtiSeal, the surgical stapler ArtiStapler, the laparoscopic camera system LivsCam, and the surgical robot Stark.
The surgical instrument market is effectively dominated by the U.S. company Intuitive Surgical, but Livsmed is confident of expanding its market presence based on its technology and price competitiveness.
Lee said, "Unlike Intuitive Surgical, whose patents are nearing expiration, Livsmed has recently secured more than 500 patents, giving it differentiated technological strength," adding, "The price is also 600,000 won per surgery, which is cheaper than competitors."
In fact, Livsmed has shown steep growth recently. Operating profit is still in the red, but revenue growth is in the 70% range annually. This year's annual revenue is expected to be about double last year's, and the company expects a turnaround to the black starting next year.
Lee said, "For now, only one product is generating revenue," but added, "Starting next year, we will diversify our product lineup and expect explosive revenue growth."
On the back of these expectations, Livsmed is considered a big fish in the IPO market in the second half of this year. In this listing, Livsmed will offer 2.47 million shares. The indicative price range is 44,000–51,000 won. Based on this, its market capitalization immediately after listing would be 1.0851–1.3563 trillion won. Considering that medical device corporations are not typically valued highly in the domestic market, it boasts an unusual valuation.
The offer price will be finalized after book-building through the 10th. Subscriptions are scheduled for the 15th to 16th. The listing is on the 24th. The lead underwriters are Samsung Securities and Mirae Asset Securities.