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EST CEO Kim Young-gon speaks at an initial public offering (IPO) press conference held at the 63 Building in Yeouido, Seoul, on the 20th. / Reporter Han Hye-sung

EST, a specialist in electrostatic chucks (ESCs) for semiconductors and displays, is moving to expand its semiconductor business using a KOSDAQ listing as a springboard. The company aims to aggressively pursue domestic localization in the semiconductor ESC market dominated by Japanese manufacturers, with a target of nearly doubling revenue by 2028. While operating deficits persisted through last year, the company swung to a profit in the first half of this year, making mass-production approvals from semiconductor clients and the expansion of new orders the key factors determining future earnings growth.

Kim Young-gon, CEO of EST, stated at an initial public offering (IPO) press conference held at the 63 Building in Yeouido, Seoul, on the 20th, "Building on the experience and technological prowess accumulated in the display sector, we will aggressively expand the localization of semiconductor electrostatic chucks and the supply of high-end products."

Established in 2016, EST manufactures electrostatic chucks (ESCs) that use electrostatic force to hold semiconductor wafers and display glass substrates in place. Building on its display ESC technology, the company is broadening its business to supplying refurbished semiconductor parts and developing brand-new products. In a market dominated by Japanese firms, its strategy is to secure clients through refurbished product supplies and then expand to supplying newly developed domestic products.

EST's revenue last year reached 35.4 billion won, up 20.4% year-on-year. Over the same period, its operating loss narrowed from 2.6 billion won to 70 million won, and the company swung to a profit in the first half of this year by posting revenue of 23.1 billion won and an operating profit of 475 million won. However, net loss stood at approximately 2.8 billion won. The company targets achieving revenue of 39.4 billion won and an operating profit of 1.3 billion won this year, progressing toward 70 billion won in revenue and 15.6 billion won in operating profit by 2028.

At the center of its earnings growth lies the semiconductor ESC business. The company expects revenue from the semiconductor division, which stood at roughly 7 billion won last year, to expand more than fivefold to 37.8 billion won by 2028. Its share of total revenue will also rise from roughly 20% to 54%. To achieve this, the company plans to expand its semiconductor ESC production capacity 2.5-fold, from the current 20 billion won annually to around 50 billion won by the second quarter of next year.

Among the 22 products that completed evaluations for semiconductor ESCs to date, 21 have received mass-production approval, and the company plans to increase cumulative approved products to 57 by 2028. It is also pursuing plans to expand its customer base to major domestic chipmakers including Samsung Electronics and SK Hynix.

Pursuing a technology-special listing as a specialized materials, parts, and equipment enterprise, EST calculated its public offering price by discounting its projected 2028 net profit of approximately 12.2 billion won to present value and applying the price-to-earnings ratio (PER) of peer companies. In effect, it determined its enterprise valuation on the premise of future profitability improvements.

Through this IPO, EST plans to raise between 23.3 billion and 27.3 billion won by issuing 2.2 million new shares. The indicative price band is set at 10,600 to 12,400 won, which yields a post-listing market capitalization of approximately 172.5 billion won at the upper end. Net proceeds of approximately 23.1 billion won based on the lower end of the band will be channeled into semiconductor facility investments and research and development.

EST aims for a KOSDAQ listing in November, with Daishin Securities serving as lead manager. Institutional book building concludes today, and public subscriptions will take place from the 22nd to the 23rd.

                                                                                                            Han Hye-sung