Lablup prices Korea IPO at band's floor, raising $31.2M for Kosdaq debut
What's the deal? AI infrastructure software maker LablupDealroom has a profile for this one. Try Dealroom → will list on South Korea's Kosdaq market on November 3, raising US$34.7M. It set its offer price at US$15.9 per share — the bottom of its US$15.9–US$18.4 range.
Why the floor price? Lablup cited market worries over AI infrastructure spending and volatility in Korean equities during its bookbuilding period. Institutional demand drew 1,129 firms at a 284.53-to-1 ratio, but nearly half bid below the target range.
What's the endgame? Lablup's main product is Backend.AI, software that splits GPUs and other AI accelerators across users and manages model training, inference, deployment, and operations. It supports Nvidia, Intel, and AMD chips across on-premises, cloud, and closed-network setups. The company plans to spend IPO proceeds on R&D and overseas expansion across North America, Asia, and Europe.
By the numbers: First-half revenue rose 58.2% year on year to about US$4.02M, with operating profit near US$503K. Recurring revenue made up 94.7% of last year's sales, and net revenue retention hit 131.9%.
What could go wrong? Retail demand was thin, with general subscription drawing just 3.55-to-1. Lablup's offer price landed 35.7% below underwriter NH Investment & SecuritiesDealroom has a profile for this one. Try Dealroom →' US$24.8 valuation, which assumed steep growth from overseas clients. Any delay in customers' infrastructure spending could slow sales.
The signal: The muted pricing shows that an AI label alone no longer guarantees investor demand on the Kosdaq. Of nine companies listed there from September to late October, six traded below their offer price. Lablup chief executive officer Shin Jeong-kyu said he will "prove corporate value through real business results" after listing.
Read more: platum.kr
Image credit: Lablup
