Robotics startup Doosan Robotics pops 127% in trading debut, making it South Korea’s largest IPO of 2023

South Korean robotics startup Doosan Robotics finally made its debut on the Seoul stock exchange on Thursday. The company’s shares more than doubled their initial public offering (IPO) price, driven by the surging demand for robotics stocks. This momentous market entry occurred just over a month after the company initiated a $318 million IPO.

At the beginning of trading, Doosan’s shares opened at 59,100 won each, representing a remarkable 127% surge from the IPO price. During the early trading hours, its shares climbed even higher, reaching as much as 67,600 won, eventually settling at 51,400 won.

In total, the company successfully raised 421.2 billion won ($317 million), making it South Korea’s largest IPO of the year. The shares were priced at 26,000 won each, at the upper end of the range communicated to investors, Reuters reported

However, analyst Seo Jae-ho from DB Financial Investment cautioned that the recent heightened market interest in the robotics sector could introduce short-term fluctuations in stock prices, Reuters reported. “Due to the recent high market interest in the robot sector, there is a risk of short-term stock price volatility,” Jae-ho said.

We covered Doosan in late August after the robotics startup opened books for a $318 million IPO. The startup is recognized as one of the foremost suppliers of collaborative robots in Korea

Founded in 2015 as a subsidiary of the larger Doosan Group, the company quickly emerged as a noteworthy contender in the global robotics landscape. Doosan Robotics is also recognized for its advanced robotic technology catering to diverse sectors such as manufacturing, logistics, and healthcare. Its robotic systems boast cutting-edge features including collaborative capabilities, precise motion control, and user-friendly interfaces, enabling seamless integration alongside human operators for intricate tasks.

Since its inception eight years ago, Doosan Robotics has introduced a variety of robot models, encompassing articulated robots featuring multiple joints and collaborative robots (cobots) designed to work harmoniously with human counterparts. The robots are capable of executing functions such as material handling, assembly, welding, and quality inspection.

Meanwhile, the demand for robotics stocks has been steadily building in recent months, propelling shares of smaller competitor Rainbow Robotics to a remarkable 312% year-to-date increase. Notably, Doosan is known for producing collaborative robots that work alongside humans, finding applications in cafes and bars, among other places.

Doosan’s strong market debut stands out as a rare success amidst a global IPO landscape where many newly listed companies have experienced immediate sell-offs or struggled to maintain their issue price in their initial days.

Remarkably, South Korean companies have raised $1.7 billion in new funding during the first nine months of 2023, a significant decline from the $12.7 billion raised during the same period the previous year, as per data from LSEG.