Samsung-backed semiconductor parts maker eyes IPO

MiCo Ceramics Ltd., a semiconductor equipment parts subsidiary of the industrial ceramics maker MiCo Co., is pushing forward with IPO preparations.

The company has selected KB Securities Co. as the underwriter for public offering and will file for a preliminary screening by the Korea Exchange within the first half of 2021, according to banking sources on Apr. 8.

MiCo Ceramics was established in February last year as a spin-off company manufacturing ceramic heaters, ceramic electro-static chucks (ESCs) and ceramic consumables.

The company’s main product is the ceramic heater, which adjusts the temperature within semiconductor chambers.

The ceramic heater has replaced the previously used metal heater in the industry by increasing the production yield, by generating heat higher than 400°C without deformation of the material.

The global ceramic heater market, dominated by Japanese firms that hold 95% of the total industry, is sized at 500 billion won ($447 million).

MiCo Ceramics began to manufacture ceramic heaters in Korea after receiving a request from Samsung Electronics Co. for domestic production. The company’s clients today include Wonik IPS Co. and the Dutch company ASM International in addition to Samsung.

Its revenue last year recorded 62 billion won ($55 million) with net profit of 8.5 billion won ($7.6 million). The growth momentum is expected to accelerate this year with the rise in demand for semiconductor equipment.

MiCo Ceramics attracted renewed attention from the market last November when Samsung Electronics participated in the company’s third party rights offering, investing a total of 21.7 billion won ($19.4 million) for a 15.7% stake.

The remaining 84.3% ownership is held by MiCo Co., its parent company.

Analysts say that the market capitalization of MiCo Ceramics, which was valued at around 140 billion won ($125 million) at the time of Samsung’s investment, is likely to reach more than 420 billion won ($375 million) after the public offering.

MiCo Co. is expected to use the fund raised from the IPO in acquiring Hyundai Heavy Industries Power Systems Co. (HHIPS), an industry boiler affiliate of Hyundai Heavy Industries Holdings Co. (HHIH)

MiCo Co. has completed the due diligence on HHIPS and plans to finalize the acquisition terms in HHIH before May. Industry sources say that the acquisition price currently under discussion is estimated at around 200 billion won ($178 million).

With the listing of MiCo Ceramics, all MiCo group affiliates would be publicly traded except its fuel cell company MiCoPower Ltd.

MiCo’s other listed companies include a precision cleaning and special coating company KoMiCo Co. and a molecular diagnosis company MiCo BioMed Co.

Write to Ye-Jin Jun at ace@hankyung.com
Daniel Cho edited this article.