UK chip testing device maker TeraView seeks Kosdaq debut

TeraView Ltd., a UK semiconductor inspection device maker, is aiming to list on South Korea’s Kosdaq market in the second half of this year, in what could be the first listing by a European company on the junior bourse.

It plans to file for preliminary IPO review as early as May 16, according to investment banking sources. Samsung Securities Co. is managing the IPO.

TeraView qualifies for South Korea’s fast-track IPO program for small, high-tech enterprises after securing A ratings from two authorized institutions in a recent technology evaluation.

Its debut on the South Korean stock market is expected to broaden its customer base in the country, home to the world’s two largest memory chipmakers – Samsung Electronics Co. and SK Hynix Inc. – as well as in the battery and automotive sectors.

TeraView, spun out of Toshiba Research Europe in 2001, is also considering manufacturing its products under original equipment manufacturing (OEM) contracts in Korea, according to sources.

The British arm of Nasdaq-listed Nordson is its largest shareholder, with the remaining shares held by its top executives and institutional investors.

TeraView specializes in developing and manufacturing inspection tools that detect faults by applying terahertz light. The technology enables non-destructive detection of defects in semiconductors, EV batteries and automobiles.

Last month, it registered the two new patents of its terahertz technology used to test and inspect advanced 2.5D/3D semiconductor packaging in both South Korea and Taiwan.

In 2015, Samsung Venture Investment Corp. participated in a $10 million pre-IPO funding round of TeraView as a strategic investor. It had executed the investment in anticipation of potential business collaboration between the UK company and its affiliate Samsung Electronics.

At the end of last year, Samsung Venture made an additional investment in the UK firm, valuing it at around 140 billion won ($101 million).

The 10-billion-won pre-IPO funding round drew participation of other Korean venture capital firms, including SGC Partners, Daekyo Investment, Ulmus Investment, LF Investment, Innopolis Partners and Huvis.

For its Korean IPO, TeraView is aiming for a valuation above 140 billion won.

“Terahertz-based inspection technology is being increasingly used in the semiconductor and secondary battery manufacturing process,” said a Samsung Securities official. “We will highlight the technology’s strong potential of wider adoption to investors.”

If its IPO goes through, it will become the second foreign company to trade on the Kosdaq since NeoImmuneTech Inc. in 2021. NeoImmuneTech, based in the US, is a T cell-focused immunotherapy developer.

Write to Hangjong Choi at onebell@hankyung.com
 


Yeonhee Kim edited this article.