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Becomes first among South Korean prototype companies to be listed on the KOSDAQ on October 7
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CMF technology and rapid process capabilities to serve more than 500 global customers
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Securing future growth engines by developing own brand and expanding business models
Seoul, Korea, October 7, 2022
- Model Solution, a subsidiary of Hankook & Company Group (formerly Hankook Tire Group), became the first Korean prototype company to be listed on the KOSDAQ. Through the IPO, Model Solution plans to accelerate the development of its future growth engines.
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 company has been taking its first official steps to going public on the KOSDAQ starting from passing the preliminary examination of listing requirements in July, followed by submitting a registration statement and forecasting demands from investors; both general and institutional.
In specific, the demand forecast conducted on September 19th and 20th 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 September 26th and 27th. The IPO was oversubscribed by 1,514.8 times, and subscription deposits totaled KRW 5.1124 trillion. As a result, the issue obtained the title of a blue-chip stock. The final public offering price was set at KRW 27,000, the upper end of the issued price band, to keep market-friendly conditions. Approximately KRW 27 billion was raised in total.
Model Solution provides a one-stop business solution to help customers realize various ideas by implementing top quality technology. By providing its unique Color, Material, and Finish (CMF) design and adhering to its rapid production process, the company has served more than 500 global customers including Google, Amazon, Tesla, Samsung, and Hyundai Motors.
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 KRW 61.1 billion and the operating profit KRW 8.9 billion, which is a growth of 9.8% and 32.1% from 2020, respectively. The sales for the first half of this year logged KRW 32.2 billion.
Through the IPO, Model Solution plans to secure future growth engines in order to make a quantum leap leading the industry as an innovative manufacturing company. The company plans to first develop its own hardware brand. As part, the Augmented Reality (AR) Head Mounted Display (HMD) prototype that was developed in the previous year will undergo pilot testing to be mass-produced and commercialized by 2023.
Furthermore, Hankook & Company, its holding company, will provide additional support by making additional investments through its accelerator program in the case Model Solution discovers innovative companies to collaborate with.
Meanwhile, to build upon the momentum, Model Solution has established a new integrated operation center in Ojeong Industrial Complex in Bucheon, Korea. This will help increase the company’s business scope as a total solution provider, and respond to contract manufacturing demands from global customers.
Model Solution has also created a new business division, the Contract Manufacturing Business Division, to oversee contract manufacturing of low-to-medium volume production of finished products. It started operating since March in the new Bucheon integrated operation center. Since July, the Tooling & Molding Division has also been transferred to the new Bucheon center to start operating. In the first quarter of 2023, the company plans to complete the transfer of the Precision CNC Machining Division. This sequential transfer is expected to create synergy with all business divisions.
Through this expansion, Model Solution will now operate a total of three business locations and one global sales base. This includes the existing two operation facilities for prototype production in Doksan-dong, Seoul, and the integrated operation center in Bucheon for tooling & molding and contract manufacturing, and North American sales base located in Silicon Valley, U.S. In addition, the company is planning the establishment of new sales bases in the East of U.S and Germany to increase its presence in the global market.
“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 Byungil Woo, CEO of Model Solution.  ,
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