Ship scrubber maker Panasia to debut on Kosdaq in October

South Korea’s eco-friendly ship components maker Panasia has embarked on its initial public offering (IPO) process to go public on the nation’s secondary Kosdaq market by October after submitting a registration statement, the company announced Thursday.

The company looks to raise around 144 billion won ($121.6 million) to 162 billion won by offering 4.5 million new common shares at a desired price band between 32,000 won and 36,000 won apiece. Book-building for pricing will run on September 17 to 18, and retail investors will be able to subscribe the shares on Sep.22-23. Korea Investment & Securities is the lead underwriter.

Founded in 1989, Panasia has been focusing on eco-friendly products including ballast water treatment system that eradicates harmful contaminants in the ballast water and scrubbers that clean exhaust gases.

The market for marine scrubber system is booming as the International Maritime Organization (IMO)’s new regulation that went into effect in January requires marine fuels to contain less than 0.5 percent sulfur by weight, compared with earlier 3 percent. Under the regulation, large ships of more than 400 gross tonnage should switch fuels to low sulfur fuel oil (LSFO) or liquefied natural gas (LNG), or install a scrubber.

Sales of Panasia have been on a surge as many ship owners opted to install scrubbers instead of switching greener fuel which is very costly.

The company raked in 71.5 billion won in operating profit on a consolidated basis in 2019, soaring 1,398.45 percent from 100 million won in the previous year. Its sales soared 474 percent to 328.5 billion won. During the first six months this year, it posted a 352.64 percent and 148.92 percent on-year surge in operating profit and sales, respectively, to 58.2 billion won and 198.5 billion won.
Source: Pulse

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