First Korean Prototype Company to Be Listed
Model Solution, a subsidiary of Hankook & Company Group (formerly Hankook Tire Group), has become the first Korean prototype company to be listed on the KOSDAQ.
Founded in 1993, Model Solution is a total solution provider that serves the entire product development stage from design to prototypes, precision Computer Numerical Control (CNC) machining, tooling & molding, and contract manufacturing for various sectors including electronics, medical devices, consumer goods, robotics and automotive.
The demand forecast conducted on Sept. 19-20 recorded a high competition rate of 1,725.78 to 1, proving the company’s popularity. The competition among non-institutional investors also heated up on Sept. 26 and 27. The IPO was oversubscribed by 1,514.8 times, and subscription deposits totaled 5.1124 trillion won. As a result, the issue obtained the title of a blue-chip stock. The final public offering price was set at 27,000 won, the upper end of the issued price band, to keep market-friendly conditions. Approximately, 27 billion won was raised in total.
Model Solution provides a one-stop business solution to help customers realize various ideas by implementing top quality technology. It has served more than 500 global customers including Google, Amazon, Tesla, Samsung, and Hyundai Motor.
Since being acquired by Hankook & Company in 2018, Model Solution has shown continuous growth in sales to record an average operating profit margin of 14% until last year. The sales numbers for the previous year were reported as 61.1 billion won and the operating profit 8.9 billion won, which is a growth of 9.8% and 32.1% from 2020, respectively. The sales for the first half of this year logged 32.2 billion won.
The company plans to first develop its own hardware brand. It developed an augmented reality (AR) head mounted display (HMD) prototype last year and plans to mass-produce and commercialize it by 2023.
“In order to stay ahead of industry trends, we will continue to expand its business portfolio by employing new business models, and adopting latest technologies such as Augmented Reality to the products. We are also preparing ourselves to secure customers in new fields such as medical devices, robotics, and aerospace,” says Woo Byung-il, CEO of Model Solution.