Labup to List on Kosdaq on Nov. 3, Expand AI Infrastructure Software Business
TECHWORLD ·
✦ AI Summary
Labup conducted an institutional investor book-building ahead of its Kosdaq listing on Nov. 3, with a competition ratio of 284.53 to 1.
The offering price was set at KRW 19,000, the bottom of the desired range, and the company is offering 2.18 million shares for KRW 41.4 billion.
The company plans to pursue advanced R&D and overseas expansion after the listing, based on its AI infrastructure software, 'Backend.AI,' and 'Continuum Suite.'
Labup is set to list on the Kosdaq market on Nov. 3. Ahead of the listing, the company held a book-building process for institutional investors from the 13th to the 19th, drawing participation from 1,129 institutions and recording a competition ratio of 284.53 to 1. Based on that, the offering price was set at KRW 19,000, the bottom of the desired range.
The number of shares offered is 2.18 million, and the offering size is KRW 41.4 billion. The number of shares scheduled to be listed is 14,565,939, and the expected market capitalization based on the offering price is about KRW 276.8 billion.
The company plans to use the funds raised through this offering to advance research and development and expand its overseas business.
Labup is a company that develops AI infrastructure software. It develops software for managing and operating AI accelerator and data center infrastructure, including GPU. It supports accelerators such as NVIDIA, Intel, and AMD, and can be used in on-premises, cloud, hybrid, and air-gapped environments. Through this, it provides integrated management functions for AI infrastructure across different environments.
Through its flagship product, 'Backend.AI,' the company supports AI computing resource management as well as model training and inference, deployment, and service operations. A key function of the product is to allocate the customer's GPU resources across multiple users and tasks and improve infrastructure utilization.
Against this backdrop, the company's business structure is designed so that expansion of a customer's infrastructure translates into additional license revenue. Last year's recurring revenue ratio was 94.7%, and last year's net revenue retention rate (NRR) stood at 131.9%.
This business structure was also reflected in its earnings. The company's revenue in the first half of this year was about KRW 4.8 billion, up 58.2% from a year earlier, and operating profit for the first half was about KRW 600 million. The company said it maintained profitability alongside revenue growth and has continued to post positive operating cash flow since 2020.
The company has recently expanded its business scope from GPU resource management to AI service operations. To that end, it unveiled a new solution, 'Continuum Suite,' and secured its first customer after commercialization. 'Continuum Suite' supports AI model operations, API management, and token usage and cost management functions.
After the listing, Labup plans to enhance the capabilities of Backend.AI and secure customers for new solutions such as Continuum. The company aims to strengthen the competitiveness of its existing products while broadening the customer base for new solutions.
It also plans to strengthen its overseas business by expanding local partnerships in North America, Asia, and Europe. Shin Jeong-kyu, CEO of Labup, said the company will seek to prove its corporate value through tangible business results after the listing, while pursuing stable growth in its existing business and expanding its AI infrastructure software business through customer growth for new solutions and entry into global markets.
Source: TECHWORLD · Kim Seung-gi
Original: https://www.epnc.co.kr/news/articleView.html?idxno=408843
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Source: TECHWORLD
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