Kosdaq-listed Model Solution seeks rapid innovative growth

Model Solution CEO Woo Byung-il, center, celebrates the listing of the firm on the Kosdaq, at the headquarters of the Korea Exchange in Yeouido, Seoul, Friday. Courtesy of Model Solution

By Lee Kyung-min

Model Solution, a prototyping services solution subsidiary of Hankook & Company Group, was listed on the Kosdaq market, Friday, the first among the high-tech prototype industry players to make a local stock market debut, the company said.

After being acquired by Hankook & Company in 2018, Model Solution has since registered an annual average increase of 14 percent in operating profit.

Sales and operating profit came in at 61.1 billion won ($43.2 million) and 8.9 billion won, last year, a year-on-year increase of 9.8 percent and 32.1 percent, respectively. Sales in the first half of this year amounted to 32.2 billion won.

The next growth strategy for the newly-listed firm will be the development of a hardware brand and enhanced recognition, as buttressed by full commercialization and the mass production of its augmented reality (AR) and head-mounted display (HMD) prototypes next year, following pilot tests this year.

“We will continue efforts to fortify our business portfolio, including the adoption of new business models as well as the latest technologies,” Model Solution CEO Woo Byung-il said. “We will map out strategies to identify new growth markets in the sectors of medical devices, robotics and aerospace.”

Founded in 1993, Model Solution is a total solution provider that oversees the entire product development stage, including design, prototyping, precision computer numerical control (CNC) programming, tooling, molding and contract manufacturing.

It gained worldwide recognition for providing a one-stop business solution to help rapid ideation, prototyping and delivery of consumer needs, as underpinned by top production and management platforms.

The firm delivers final products within a week of receiving a project order, expedited by its Color, Material, and Finish (CMF) design, an industrial design technology used to meet the needs of over 500 top global firms, including Google, Amazon, Tesla, Samsung, and Hyundai Motors. Demand for its services are increasing from manufactures of electronics, medical devices, consumer goods, robotics and automotive products.

The firm got the green light for Kosdaq listing after meeting relevant requirements in July. A competition rate of 1,725.78 to 1 was recorded in a two-day book-building for institutional investors between Sept. 19 and 20.

The rate for non-institutional, general investors later that month came to 1,514.8 to 1, raising the subscription deposit total to over 5.1 trillion.

The firm was able to draw 27 billion won in investment, after setting the per-share price at 27,000 won.