Anticipated IPO

Starting February 6, 2025, Doosan Škoda will be listed on the Prague Stock Exchange’s Prime Market under the ticker DSPW. The company aims to raise approximately CZK 2.5 billion (EUR 99.5 million), with a price range set between CZK 220 and CZK 260 (EUR 8.76 – EUR 10.35) per share. The final pricing details will be announced around February 5. The company’s valuation could reach CZK 8.3 billion (EUR 330 million), making it the largest IPO in Prague in the past four years. If shares are sold at the midpoint of the price range, the company could exceed its CZK 2.5 billion fundraising target. Doosan Škoda would receive nearly CZK 700 million (EUR 27.8 million), while its parent company, Doosan Power Systems, would gain CZK 1.8 billion (EUR 71.6 million). According to promotional materials, the plan is to issue 23% of shares currently owned by Doosan Power, totalling over 6.6 million shares, along with nearly 3 million new shares. In the event of high demand, the Czech company is prepared to increase the offering. A lock-up period of 360 days will apply to the IPO, restricting share sales during this time. The offering is backed by major Czech financial institutions, including Raiffeisen Bank, WOOD & Company, and J&T BANKA.

A Renowned Czech Manufacturer

Doosan Škoda Power is a major player in steam turbine manufacturing, supplying industries such as refineries, chemicals, and steel production. The company is also a key provider for the renewable energy sector, with prominent customers including ČEZ, Energetický a Průmyslový Holding, Orlen, and others. Its operations are centred in Pilsen, where it opened a research centre over a decade ago, bringing global turbine development under the Doosan Group to the Czech Republic. The company has been part of the Doosan Group for 16 years. One of its notable projects is the National Center for Energy II, launched in 2022 to develop sustainable energy solutions. In 2023, it collaborated with European researchers on a high-efficiency solar power plant concept.

Financial Performance

Investors purchasing Doosan Škoda shares will be entitled to dividends amounting to 70% of the net profit from the previous fiscal year. According to its consolidated financial report, the company posted a profit of CZK 355 million (EUR 14.1 million) on revenues of nearly CZK 4 billion (EUR 159.1 million) from the beginning of 2024 until September 24, 2024. In 2023, revenues totalled CZK 4.8 billion (EUR 191 million) with a net profit of CZK 559 million (EUR 22.2 million). The company has demonstrated stable revenue growth from 2021 to 2023, with a compound annual growth rate of 16.5%.

Clear Business Strategy

The funds raised from the IPO will be used to enhance Doosan Škoda’s market position, strengthen its competitiveness, and boost credibility. The company also aims to improve production efficiency, invest in new machinery and digitalization, and support research and development in the energy sector.

COO Daniel Procházka envisions a future in small modular reactors, with Doosan Škoda set to collaborate as a subcontractor for the Korean conglomerate KHNP. KHNP will construct two nuclear reactors in Dukovany, Czech Republic, with the first unit expected to be operational by 2036.

Conclusion

Doosan Škoda Power enters the Prague Stock Exchange at a time of significant transformation in the energy sector. With a strong legacy, solid backing, and ambitious plans, the company has the potential to attract investors not only through its financial performance but also with growth prospects in renewable and nuclear energy. A successful IPO will provide the capital needed for modernization, innovation, and expansion, reinforcing its market position. Investors have the opportunity to take part in the future of a key player in the energy industry with strong international ties.[1]

Sources:

https://www.rb.cz/attachments/investice/ipo/Doosan_Skoda_Power_IPO_Launch_CZ.pdf

https://finance.yahoo.com/news/doosan-skoda-power-launches-ipo-101357922.html

https://www.hrot24.cz/clanek/jaderne-bloky-v-dukovanech-postavi-korejci-oznamil-fiala-HmUzJ

[1] Forward-looking statements represent assumptions and current expectations that may not be accurate or are based on current economic conditions that may change. These statements are not guarantees of future performance. Forward-looking statements by their nature involve risk and uncertainty because they relate to future events and circumstances that cannot be predicted and actual developments and results may differ materially from those expressed or implied by any forward-looking statements.

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