"PRENEU is preparing for an IPO targeting the first publicly traded company in the drone industry."
PRENEU CFO Cho Jae-hwan (photo) expressed his ambition to be listed on the KOSDAQ market in an interview with "Bloter" on the 29th of last month. PRENEU is a start-up that manufactures and develops drone aircraft and avionics systems.
It is undergoing the process of entering the KOSDAQ market early next year as a special technology listing track. It is currently conducting a technical evaluation, and plans to receive approval for a preliminary listing review within this year. If PRENEU succeeds in listing early next year, it will be the No. 1 drone industry listing.
Confidence in continuous sales growth
As drones have recently emerged as game changers in the Russia-Ukraine war, interest in companies in related fields is growing worldwide. The global drone market is expected to grow to $55 billion by 2030, and the domestic market is also expected to more than double by 2030.
PRENEU is seeking growth opportunities by expanding its business to various service fields using drones from drone self-design and core component development. It is the only Korean drone company that has design technology and its own production system for all types △ VTOL fixed blades △ multicopter type rotor blades △ helicopter type rotor blades, and is supplying drones to various fields such as defense, public institutions, and private companies.
PRENEU recently hired Cho Jae-hwan, a former head of venture capital (VC) management support, as its chief financial officer (CFO) in preparation for an initial public offering (IPO). Director Cho had 14 years of experience in finance and accounting through the IR team and policy support team at Samsung Card, and joined Daily Partners in 2021 and served as the head of the management support office. "I joined PRENEU a year ago because I wanted to help the startup go public," Cho said.
Since joining PRENEU, Director Cho has been working on improving the management process and strengthening financial stability. In particular, it is leading external communication such as investors and IPO preparation work. Last month, the Korea Development Bank and others finished attracting 15 billion won worth of pre-IPO round investment as new investors.
Director Cho said, "Since PRENEU sales continue to grow, if only the technical evaluation is passed, the approval of listing is expected to be positive." In fact, PRENEU sales increased from 6.9 billion in 2023 to 8 billion last year. In the first half of this year, sales of 6.7 billion won have already occurred, and this year is expected to more than double compared to the previous year.
However, the task of converting the surplus remains. Director Cho said, "It is difficult to mass-produce due to the weak structure of the domestic component cluster, which makes it difficult to manufacture overall parts and high demand," adding, "If mass demand occurs through the electrification of dissipation, we expect to improve profitability and speed up the conversion of surplus due to expected effects on localization of parts such as cost reduction."
Expansion of demand centered on defense...Targeting overseas markets
PRENEU plans to create large-scale demand for core products and components centered on the defense market and expand them to public and private markets.
Customers who currently account for the largest portion of the defense market are expanding their cooperation with the Air Force and defense companies. In addition, it has been selected as a large-scale multi-purpose reconnaissance drone development project organized by the Defense Acquisition Technology Research Institute under the Defense Acquisition Program Administration, and is delivering equipment and conducting pilot operations. Director Cho said, "If drones in pilot operation are converted into military weapons, we can expect a quantum jump in sales along with mass orders."
The main customer of the private market is the Dongwon industry, which is developing and delivering the world's first drone dedicated to fishing group detection. The number of deliveries is expected to expand this year in the future. In addition, it has SK Ocean Plant and HD Hyundai Heavy Industries as its customers and is also delivering them to public institutions. Director Cho added, "We have a lineup for each gas to meet various demands through development over the years and plan to start full-scale operations from this year."
As it is expected to expand delivery in the future, the public offering funds will be used to expand factories for mass production, optimize manufacturing and assembly processes. It will continue to invest in strategic product development tailored to market demand, securing quality and price competitiveness, and spreading the use of drones.
In addition, PRENEU plans to actively advance not only domestically but also overseas. "We want to expand our global network by securing overseas bases and establishing ODM strategic partners," Director Cho said. "We will first target Central Asia, Africa, and Southeast Asia and establish a local JV investment and production system in Kazakhstan in the second half of this year."
SOURCE : BLOTER(https://www.bloter.net)