DTS shares more than doubled on their Kosdaq trading debut on the 23rd, holding firm even as a slide in U.S. technology stocks weighed on the broader market. DTS, a subsidiary of DASAN Networks, is the second subsidiary to list on Kosdaq under South Korea's restrictions on parent-subsidiary listings, after securing the consent of its parent's shareholders.
As of 9:15 a.m. on the 23rd, DTS was trading at 39,500 won, up 113.51% from its initial public offering price of 18,500 won. The stock rose as high as 40,700 won during the session. Buying interest remained strong even though both the KOSPI and the Kosdaq opened more than 2% lower following an overnight selloff in U.S. technology shares.
Founded in 2000, DTS is the only company in South Korea that supplies both air-cooled condensers (ACC) and air-cooled fin-fan coolers (AFC), offering comprehensive air-cooled heat exchanger solutions. It has completed a cumulative 284 projects in more than 30 countries. On a consolidated basis last year, the company posted revenue of 142.718 billion won, operating profit of 25.082 billion won and net profit of 18.765 billion won.
Investor interest was high even before the listing. In the book-building process for institutional investors, demand drew a subscription ratio of 983.98 to 1, allowing the company to set its IPO price at the top of its indicative range of 17,000 won to 18,500 won. The retail subscription held on the 13th and 14th of this month drew a ratio of 986.99 to 1 and about 5.0873 trillion won in subscription deposits.
DTS also drew attention as a subsidiary of DASAN Networks, a Kosdaq-listed company. By pursuing its listing with the consent of its parent's shareholders, it became the second case to pass the parent-subsidiary listing restrictions, after Duksan Nepcore, which debuted on the Kosdaq on the 30th of last month. Based on shares outstanding after the offering, DASAN Networks holds a 31.99% stake.
The company plans to use the proceeds to carry out large-scale projects and to invest in facilities for its existing and new growth businesses. It also intends to spend on developing new growth technologies, such as cooling for artificial intelligence data centers, and on expanding global marketing and exports.
