Axion Group Raises 2 Billion Won Through Small Public Offering via SK Securities... First KOSDAQ Case After Fundraising Limit Expansion

Axion Group (069920) became the first KOSDAQ-listed company to utilize the expanded small public offering limit for fundraising following the financial authorities' revision of the small-scale public offering system.

On July 28, Axion Group announced via public disclosure that it had decided to issue 2 million new common shares at 1,005 won per share through a general public offering. The total amount to be raised is approximately 2.01 billion won.

The subscription will be held over two days, from August 3 to August 4, at the SK Securities headquarters and branches, as well as via the Home Trading System (HTS) and Mobile Trading System (MTS). The listing date for the new shares is scheduled for August 20.

This offering is an example of applying the revised small public offering system implemented by the Financial Services Commission on July 28. The ceiling for small public offerings was increased from less than 1 billion won to less than 3 billion won, improving fundraising conditions for companies. Axion Group became the first KOSDAQ-listed company to utilize the expanded criteria.

The small public offering system allows companies to reduce both the time and cost required for fundraising by applying a simplified disclosure process compared to standard securities registration statements. The Financial Services Commission raised the limit to ease the disclosure burden on small and venture companies and to support seamless fundraising. According to checks with the Financial Supervisory Service's electronic disclosure system and Korea Exchange disclosures as of the morning of July 30, Axion Group is the first KOSDAQ company to carry out a small public offering in the expanded range, between 1 billion and 3 billion won, since implementation of the revised system.

The company is also improving its performance through restructuring its business portfolio. In 2024, sales were only 4.82 billion won, with an operating loss of 10.5 billion won and a net loss of 17.9 billion won, reflecting severely deteriorated profitability.

Subsequently, the new management substantially reduced the e-commerce business, which had been continuously in deficit since 2025, and instead undertook business restructuring by integrating the sales organization and revenue base of the high-tech plant construction business internally.

As a result, for the first half of 2025, sales had surged to 24.57 billion won, and operating losses had been reduced to 5.84 billion won, demonstrating that the effects of business reorganization were beginning to show in the financial indicators.

During the restructuring, the company set targets to achieve annual sales of 20 billion won or more and to establish a sales base exceeding 50 billion won in 2026. In reality, 2025 sales surpassed the set targets, and the company is experiencing even steeper growth this year.

In the first half of 2026, sales reached approximately 44.89 billion won, while first-quarter sales were about 20 times higher compared to the same period last year. According to its public disclosure, the total increase in new contracts in the first quarter this year was 32.36 billion won, with remaining contract value as of the end of March at 42.81 billion won.

The company expects that if investments in semiconductor manufacturing facilities continue to expand and additional orders are secured, reaching annual sales of 80 billion won is also achievable.

The company is simultaneously raising capital to strengthen the foundation for growth. On June 11, the company decided on a third-party allocation of 6 billion won in a paid-in capital increase, which was completed on July 14. On July 20, it decided on an additional rights offering in the amount of 8 billion won. Payment for this is scheduled for August 20, and, with the completion of this small public offering, the company will have secured funding totaling around 16 billion won.

Axion Group’s high-tech segment involves not semiconductor production itself, but the engineering work—such as installation of machinery, duct, and piping—necessary for semiconductor and advanced industry production facilities. As a result, the company's orders and sales are directly influenced by new plant construction, production line expansions, and advanced process investments by major semiconductor manufacturers, rather than semiconductor prices themselves.

There is also analysis suggesting that if investments by domestic and overseas semiconductor companies increase in response to growing demand for artificial intelligence (AI) data centers and high-bandwidth memory (HBM), Axion Group’s orders and earnings could grow at an even faster pace. If the company achieves annual sales in the 80 billion won range and a shift to operating profit this year, the resulting business restructuring would be recognized for improving not only topline growth but also profitability.

This capital raising is also significant in the context of meeting strengthened listing requirements. From July 1 this year, the Financial Services Commission and Korea Exchange raised the minimum KOSDAQ market capitalization for continued listing to 20 billion won and included a closing price under 1,000 won as a new delisting criterion. Starting in January 2027, the market capitalization standard will increase again to 30 billion won.

Axion Group was designated as an “under supervision” issue on June 26 due to insufficient market capitalization. The company plans to improve listing stability and seek removal from the watch list by raising capital and improving performance through these measures. The fact that sales, which stood at 4.8 billion won with an operating loss of 10.5 billion won in 2024, have grown substantially after restructuring and the company is moving toward profitability is drawing market attention.

This content was produced with the assistance of AI translation services.