South Korea’s small and medium-sized artificial intelligence (AI) companies are pushing for initial public offerings (IPOs) on the KOSDAQ market. Fueled by the growing popularity of generative AI tools like ChatGPT and heightened expectations for government-led AI funding, these companies are aiming to secure capital through public offerings and accelerate business expansion ahead of policy and market changes. With presidential candidates also pledging bold AI initiatives, this IPO wave is expected to continue.
According to the investment banking industry on May 13, AI firms such as Acryl, Neurophet, and NeuN.AI have entered the IPO pipeline. AI platform company Acryl submitted its preliminary review application to the Korea Exchange on May 9. Its flagship product is JONATHAN, a platform that enables businesses to efficiently develop and operate AI services. Acryl also offers NADIA, a healthcare-specialized AI platform tailored for hospitals.
Acryl is well-known as a company favored by major conglomerates LG Electronics and SK Inc., which made strategic investments in 2018 and, as of the end of last year, held 11.35% and 5.47% stakes respectively. The company is pursuing a technology-based IPO track and reported KRW 13.4 billion in revenue and KRW 2.4 billion in operating losses for 2023.
Neurophet, an AI-based brain disease analysis company, is also moving forward with its IPO process. The company recorded KRW 2.2 billion in revenue and KRW 14.6 billion in operating losses last year. Like Acryl, Neurophet is using the technology-special listing program and received preliminary approval from the Korea Exchange on May 8, just two and a half months after submission—signaling strong recognition of its technological capabilities. Neurophet specializes in precision AI technologies that analyze the unique structure of individual brains, with its core solutions focused on monitoring the efficacy, side effects, and prescriptions of dementia treatments.
Meanwhile, AI big data analytics firm NeuN.AI has formally begun its public offering process after submitting a securities registration statement to the Financial Supervisory Service. Based on its indicative offering price, the company plans to raise between KRW 28.9 billion and KRW 33.3 billion, aiming for a market capitalization of KRW 115.4 billion to KRW 133.2 billion post-listing.
NeuN.AI posted KRW 19.7 billion in revenue and KRW 429 million in operating profit last year. Like Acryl and Neurophet, it is pursuing listing through the technology-special track. Its main services include subscription-based enterprise platforms Quetaa Enterprise and Quetaa Data, which extract industry-specific insights from online big data for corporate clients.
The companies see strong investor sentiment around AI technologies. The general public’s familiarity with AI tools like ChatGPT has led to increased retail investor interest, and expectations for government-driven growth have risen as well. Last week, the National Assembly passed a supplementary budget bill allocating KRW 1.9 trillion to AI, raising the total 2024 AI budget to KRW 3.6 trillion.
An investment banking official noted, “While large IPOs have slowed, companies in promising sectors like AI continue to attract investor attention. The ongoing wave of AI company IPOs is expected to continue into the second half of this year.”
By The Korea Economic Daily (https://n.news.naver.com/mnews/article/015/0005131580?sid=101)