[IPO Chat] Ucast “Targeting the 5G defense industry market based on defense and public communication technology”

“Based on the technology and business experience we have accumulated in the defense and public infrastructure fields, we will expand our business to industrial sites and overseas markets.”

Kim Jae-hyung, CEO of UCast, made this announcement at an initial public offering (IPO) press conference held on the 12th, and presented a plan to use the KOSDAQ listing as an opportunity to expand the company's entry into the 5th generation mobile communication (5G) specialized network for industrial use and the overseas defense industry market.

Established in 2011, Ucast is a communications equipment company that develops independent mobile communications networks.

An independent mobile communication network is a communication network that is operated independently by a specific facility or region without relying on the general mobile communication network of a telecommunication company, and is mainly used in places where it is difficult to use an external communication network, such as military operation areas or disaster sites.

Ucast is developing its own core components, from 5G base stations to core networks responsible for data processing and connection of communication networks, and operation and management software. It also supplies mobile base stations that can be mounted on vehicles, backpacks, and drones.

The company is expanding its business area into the industrial specialized network market based on its experience in building communication networks gained in the defense and public sectors.

CEO Kim emphasized, "We supplied equipment to the national disaster and safety communication network, maritime network, and underground utility communication network of Korea Electric Power Corporation [015760], and also participated in the development of technology related to the military tactical communication system in cooperation with Hanwha Systems [272210]."

Recently, in response to the digital transformation and artificial intelligence transformation (AX) in industrial sites, we are also pursuing a project to build an independent communication network in factories and shipyards.

Ucast participated in HJ Heavy Industries [097230] shipyard's 5G specialized network construction project and industrial complex AX demonstration project, and signed a contract with J Ocean Heavy Industries for the Gunsan Smart Shipyard construction project in July.

In the future, we plan to expand the supply of communication infrastructure to the so-called 'physical AI' field, such as robots and unmanned equipment. Through this, the strategy is to diversify the existing development service-centered sales structure.

Overseas, the company plans to utilize its local subsidiaries and business networks in the U.S. to advance into the public and industrial communications network market, and seek opportunities to enter the overseas defense industry market in Europe and Southeast Asia.

Ucast's sales last year were KRW 5.93 billion, a 43.9% increase from the previous year (KRW 4.12 billion), but its operating loss was KRW 1.83 billion, an increase from the previous year (-KRW 1.01 billion). In the first half of this year, it recorded sales of 2.24 billion won and an operating loss of 1.68 billion won.

CEO Kim said, “With this listing on KOSDAQ, we will further strengthen our core technological competitiveness and lay the foundation for continued growth by supplying high-value products and expanding our global business.”

Ucast is offering all 800,000 shares of its common stock as new shares through this IPO. Demand forecasting for institutional investors will be conducted from the 9th to the 13th, and subscription for general investors will be conducted from the 18th to the 19th.