Not a Single Order Yet, but "We'll Achieve 1 Trillion Won in Sales"...IAE Seeks 10.3 Billion Won from Shareholders [At a Crossroads] IAE ①

Raising 10.3 Billion Won from Shareholders for New Business Investment
Ambitious Plan: "150 Billion Won Sales per MDC Unit"
Concerns Mount over Business Uncertainty as No Actual Orders Secured

KOSDAQ-listed company IE has turned to shareholders for funds, highlighting a sales plan for a new business that is still in its earliest stages. If IE fails to turn a profit this year, it will post a net loss for five consecutive years, which could lead to a designation as an 'investment attention' stock. In this context, the company is seeking shareholder funds for a business unlikely to deliver immediate results, an approach that is expected to draw controversy.

According to the Financial Supervisory Service’s electronic disclosure system on August 21, IE decided on August 18 to conduct a rights offering for existing shareholders, issuing new shares worth 10.3 billion won. The proposed issue price is 2,775 won per share, and the size of the new shares amounts to approximately 50% of the total number of outstanding shares, making this a large-scale rights offering.

IE is engaged in the business of manufacturing automotive semiconductors, modules, and solutions, mainly supplying Hyundai Mobis. Through its subsidiaries, the company is also involved in power semiconductors, cloud·AI, and cooling·air conditioning businesses.

IE announced that it will use the funds raised through this offering to manufacture one 'modular data center.' Currently, IE is pursuing a new business line—modular AI data centers (MDC) under the product name 'NeoCube.' According to the company, NeoCube is an on-site, container-sized AI data center.

IE stated that each 100kW NeoCube unit is expected to generate about 15 billion won in sales. The company presented a plan to sell one unit in 2026 for 15 billion won in revenue, five units in 2027 (75 billion won), and ten units in 2028 (150 billion won), projecting sales of over 1 trillion won for the next five years.

However, so far, IE has not secured any orders related to NeoCube. The product has not even completed Proof of Concept (PoC). A PoC is a process that verifies, on a small scale, whether an idea or technology actually works. Essentially, the business exists only as a plan on paper. Yet, the company intends to use shareholders’ funds for a business that is only at the planning stage.

This has led to concerns in the market. IE needs to turn a profit this year. The company recorded net losses for four consecutive years, with annual net losses between 22 billion won and 45 billion won, reflecting substantial deficits. This is also the reason shareholders’ equity fell by more than 60% from 2021 to 2025.

According to KOSDAQ regulations, if a listed company records operating losses on a separate basis for five consecutive years, it is designated as an 'investment attention' stock. Once designated, the stock price may fall and investment sentiment could weaken, causing losses for investors.

In the first half of this year, IE posted separate cumulative sales of 7 billion won, operating losses of 400 million won, and net losses of 600 million won. The company must generate enough profit in the second half to offset these losses.

In response, an IE representative said, “The MDC business is not intended as a one-off performance to meet listing requirements, but as a new business to overcome the limitations of our automotive electronics business with the group’s capabilities. We are currently proceeding in the following order: 25kW prototype demonstration, construction of a commercial 100kW product, customer validation, and finally commercial orders. If any orders are confirmed, we will transparently disclose them according to relevant regulations.”

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