PI Advanced Materials, owned by Glenwood Private Equity (Glenwood PE), will transfer its listing from Kosdaq to the bigger Kospi after lifting production capacity.
The South Korean company issued a request for proposals to hire a securities firm to move its shares to the Kospi market, according to industry sources. Proposals are due this week and a final selection is likely to be made before the end of the month.
The listing switch, expected to be completed by the end of this year, comes seven years after the company made its public debut on Kosdaq. The firm now has a market capitalization of 1.39 trillion won ($1.26 billion), making it the 34th largest company in the marketplace. Some observers expect the company to be included in the Kospi 200 Index, which represents the 200 largest-cap stocks, after its listing transfer.
Formerly known as SKC Kolon PI, the company was founded in 2008 as a joint venture between SKC and Kolon Industries. It produces polyimide film, which is mainly used in high-tech industries such as display panels, electric vehicles and aerospace, and has a 30% global market share, outpacing rivals like Kaneka and Ube.
Glenwood PE acquired 54.06% of PI Advanced Materials for 608 billion won in March last year and recently began the construction of new manufacturing facilities that are expected to increase annual production capacity by 600 tons from 2022.
“PI Advanced Materials will be able to cement its market dominance with its increased production capacity,” an industry insider said.
The company revealed in a regulatory filing on February 15 that it had signed an agreement to supply about 665 tons of polyimide film products to a customer, unnamed due to confidentiality clauses, from this month to the end of December.
“A year-long contact means that there are concerns about short supplies,” said another industry insider. “This could help PI Advanced Materials gain the upper hand in price negotiations.”
The firm reported revenue of 261.7 billion won last year, up 17% from a year earlier. Both operating income and net income grew significantly, up 78.6% and 135.5% respectively to 60 billion won and 41.7 billion won. (Reporting by Ar-rum Rho)