Duksan Navcours, which is pushing for a KOSDAQ listing, showed confidence in meeting its revenue targets as it plans to enter a full-fledged mass production phase for next-generation products after 2027. Through next-generation defense programs, it aims to achieve 115.4 billion won in revenue and 22.2 billion won in operating profit by 2028.
Hwang Tae-ho, chief executive of Duksan Navcours, said at a press briefing held at the Conrad Hotel in Yeouido on the 14th, "Our products are set to be mounted on next-generation programs such as the Korea-style Iron Dome and a small unmanned aerial vehicle response system," and "When full-scale mass production of next-generation products begins, topline growth will also accelerate."
Duksan Navcours was founded in 2012 under the name Navcours and operates defense businesses in areas such as navigation and anti-jamming. Duksan Hi Metal, an affiliate of the Duksan Group, acquired it in Mar. 2021, giving it its current name. In navigation, it has secured core technologies used across the spectrum, including inertial navigation and integrated navigation, and in anti-jamming, it has been recognized for its competitiveness by being named a global top-20 company by the market research firm Research and Markets.
Recently, it has been expanding into the space domain as well. It supplied navigation and anti-jamming equipment for the 1st to 4th launches of the Korea-developed launch vehicle (Nuri), and the same products are slated to be mounted on the 5th launch scheduled for Oct. Duksan Navcours plans to enter the low Earth orbit satellite market based on the heritage secured through the Nuri launches. It is also participating in the Korea Positioning System (KPS) program, with plans to broaden its footing in national space infrastructure projects.
Hwang said, "Given that we have irreplaceable technology among domestic corporations in our business domain, we expect business growth going forward," adding, "We will use the funds raised in this offering to expand production capacity and prepare for mass production of next-generation products."
The next-generation defense systems Duksan Navcours is participating in include, notably, a long-range artillery interception system known as the Korea-style Iron Dome and a small unmanned aerial vehicle response system. Duksan Navcours's seeker is expected to be used in the long-range artillery interception system, which is slated for mass production in 2028. Its jamming devices and other equipment will also be used in the small UAV response system tasked with defending key facilities such as power plants and airports.
Apart from Duksan Navcours's business outlook, this listing is drawing attention as the first exception case since the financial authorities announced the "duplicate listing guidelines" in Jul. Duksan Hi Metal, the largest shareholder of Duksan Navcours, obtained shareholder consent at an extraordinary general meeting in May, prior to the release of the guidelines. At the time, the agenda item for Duksan Navcours's listing approval passed with a 72.8% approval rate based on voting rights. Earlier, last year, it also met with Duksan Hi Metal shareholders to persuade them of the need for Duksan Navcours's listing.
Hwang explained, "Investment is absolutely necessary for Duksan Navcours's growth, but without a separate listing we would have had to raise funds through the largest shareholder, Hi Metal," adding, "Because Duksan Hi Metal also needs investment to grow its semiconductor business, capital raising was limited in the current situation."
In this process, it also unveiled a shareholder return policy for Duksan Hi Metal shareholders. About 5% (about 150,000 shares) of Duksan Navcours equity held by Duksan Hi Metal will be distributed in kind to general shareholders after a one-year lockup. In addition, for five years after Duksan Navcours's listing, 10% of operating profit will be used as a dividend resource. It pledged in-kind dividends and cash dividends at the same time.
However, based on a shareholder holding 129 shares of Duksan Hi Metal, the size of shareholder returns over five years is around 50,000 won, which is not large. More than the shareholder return policy, securing investment capacity for Duksan Hi Metal through Duksan Navcours's listing was what appealed to shareholders.
A Duksan Navcours official said, "To successfully steer the ongoing programs, we needed a fundraising channel through a separate listing," adding, "With this listing, a win-win structure has been established for both Duksan Hi Metal and Duksan Navcours."
Duksan Navcours's number of public offering shares is 3 million, and the desired price band is 12,400 won to 14,600 won. Based on the band, the total expected offering amount is 37.2 billion won to 43.8 billion won. The book-building for institutional investors is being held from the 8th to the 14th of this month, and the retail subscription is scheduled for the 16th to the 17th. The lead manager is Daishin Securities.