UDC Ventures investment.. don't recall seeing this one..
CEO Kim In-gyu revealed at the KOSDAQ listing press conference on the 22nd that
he attracted investment from UDC Ventures last year... The main focus is pharmaceutical materials
(Data = IT Chem)
ITCHEM, which is challenging the KOSDAQ listing, announced that it will increase the size of its organic light-emitting diode (OLED) wastewater recycling facility nine-fold by the end of this year.
Kim In-gyu, CEO of ITCHEM, said at a press conference for its KOSDAQ listing held on the 22nd, “We have built a heavy water recycling facility (upgrade) with an annual capacity of 1 ton by 2024,” and “We plan to build an additional heavy water recycling facility with an annual capacity of 8 tons within this year.” If we add them up, it will be 9 tons per year.
Heavy water (D2O) is water that contains the heavy isotope deuterium (D) instead of the hydrogen (H) in normal water (H2O, light water). When the hydrogen in the OLED light-emitting layer material is replaced with deuterium, the molecule becomes more stable, increasing the light-emitting efficiency and brightness, and also extending the lifespan of the OLED.
CEO Kim In-gyu explained, "If 80% pure waste water (mixed with 20% light water) is pretreated at a waste water recycling facility and goes through distillation, etc., it can be upgraded to 99% pure waste water and recycled." CEO Kim said, "In the past, Korea imported 100% of its waste water," and "LG Display prepared for the task of localizing (heavy water) five years ago, and IT Chem participated in the task and localized it over the course of four years."
He said, "Korea's heavy water imports in 2024 were 41 tons," and expected that "if ITCHEM builds a heavy water recycling facility with an annual capacity of 9 tons by the end of this year, it will be possible to supply domestically up to 22%." He added, "LG Display began using heavy water for OLED for the first time in 2022, and (the application) is increasing."
(Data = IT Chem)
Currently, ITChem's OLED material business focuses on material synthesis. Its main clients include LG Chem, LT Materials, and SK Materials JNC. These companies sublimate and refine the materials they receive from ITChem and then supply them to LG Display and Samsung Display. Last year, ITChem's OLED material sales were 5.4 billion won, 11% of the total (48.8 billion won). Green Prime and Hole Transport Layer currently account for a large portion of ITChem's OLED material sales. ITChem expects OLED material sales to increase to 20% of the total this year.
CEO Kim In-gyu cited the diverse customer base in the OLED material sector as an advantage. He said, “For LG Display or Samsung Display, first-tier partners include Deoksan Neolux, Merck, and DuPont,” while “ITChem is a second-tier partner.” He continued, “Most second-tier partners only supply to one or two companies, but ITChem has four customers,” adding, “For panel manufacturers, supplying to both LG Display and Samsung Display is an advantage over other second-tier partners.” He continued, “For panel manufacturers, the reason we have no choice but to go to both is because of the heavy water supply.”
Itchem attracted an investment of 5.4 billion won (3.13% stake) from UDC Ventures, a subsidiary of UDC, an OLED material company in the United States, in August 2024. CEO Kim In-gyu requested, “Please watch the relationship between UDC and Itchem from a long-term perspective.” CEO Kim said, “UDC seems to have a tendency to form a long-term relationship once it forms one, and there has been no short-term plan for how UDC’s investment will play out in the future,” but added, “We expect that in the long term, we will see synergies in other technologies beyond displays.” He continued, “It is progressing slowly, but it is happening,” and “It has not yet been decided whether it will play a role such as simple production of a specific material.”
The relationship with customers related to the development of next-generation materials was also highlighted. CEO Kim In-gyu said, “(Customers) need a material partner when considering refining in the OLED sector, and they also need to consider a material company that can make phosphorescence (customers’) concerns a reality,” and explained, “A typical example is when LG Display and UDC have such concerns (phosphorescence) and have a meeting in the US, and an ITChem representative goes with them to discuss the concerns.” He added, “(ITChem’s) strength is that it can preemptively secure new materials through the pipeline in a locked-in relationship.”
CEO Kim In-gyu said, "We recently supplied semiconductor adhesive materials to Intel through Kolon Industries," and "the amount was around 1 billion won."
Last year, out of the total sales of 48.8 billion won, the proportion of electronic materials including OLED materials and other materials was 40%, and the proportion of pharmaceutical materials such as raw pharmaceutical ingredients (API) and pharmaceutical intermediates was 60%. I-T-Chem has facilities certified by the Ministry of Food and Drug Safety (K-GMP). Among pharmaceutical materials, the proportion of raw materials for diabetes treatment is the largest. Major clients include SK Biotek and ST Pharm.
Regarding the choice of Tesla's listing requirements (special listing for companies with unrealized profits), CEO Kim In-gyu stated, "We were able to go public in the future because we had been in the black for three years based on operating profit," but added, "We chose Tesla's listing because we had to meet the completion and delivery deadlines of our client's factory." Here, the client refers to a pharmaceutical materials client.
The public offering funds will be used to build a pharmaceutical material factory. 2 million shares will be offered. The desired public offering price is 14,500 to 16,100 won, and the total public offering amount is 29 billion to 32.2 billion won. The demand forecast period is from the 17th to the 23rd, and the general subscription period is from the 28th to the 29th. The listing underwriter is KB Securities.
The largest shareholder is Q Investment (49.66%). Q Investment's largest shareholder is CEO Kim In-gyu (53.00%). CEO Kim In-gyu took office as CEO of IT Chem in 2020. IT Chem was founded in 2005.
Kim In-gyu, CEO of IT Chem, is giving a presentation at the KOSDAQ listing press conference held on the 22nd. (Data = IT Chem) |
