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Metaverse

Simulation training developer Naviworks eyes 2022 IPO

Its Kosdaq IPO expected to diversify S.Korea's metaverse-themed stocks beyond games and entertainment

By Dec 09, 2021 (Gmt+09:00)

2 Min read

(Courtesy of Naviworks)
(Courtesy of Naviworks)

Naviworks Co., a South Korean developer of virtual reality-based military training software, looks set to join a growing pool of metaverse-themed stocks next year with a trading debut on Kosdaq.

The startup, founded in 2000, has appointed Daishin Securities Co. as its IPO manager, according to investment banking sources on Dec. 7. It plans to apply for an IPO as a loss-making startup but with cutting-edge technologies, for which the Korea Exchange lowered the bar for public offerings.

Its trading debut will diversify the pool of metaverse stocks in the country beyond game publishers, advertising companies and entertainment companies.

Naviworks supplies command and control systems and virtual tactical training programs to the South Korean army and navy. It was the first South Korean company that provided the training simulation software to the South Korean armed force, which had relied on foreign companies for the VR-based military training.

The company also develops real-time monitoring systems using CCTVs and VR programs for use in theme parks, alongside vessel navigation and traffic simulators.

Its major customers include Hanwha Systems Co., a weapons system developer; the Defense Acquisition Program Administration under the Ministry of National Defense; and Hyundai Heavy Industries Co., the world's largest shipbuilder.

(Courtesy of Naviworks)
(Courtesy of Naviworks)


Its flagship product is "Real BX," a tactical training software in the form of a strategy simulation game, where soldiers and commanders can receive training similar to actual combat in the simulation.

The immersive program also enables virtual joint tactical training involving tanks, armored vehicles and helicopters, without generating noise nor causing property damage that occurs in the actual military drills.  

Naviworks is now developing a terrorism response training program together with the National Police Agency. It is also seeking to advance into the fields of virtual tourism, digital healthcare and smart factory.

Like many other metaverse-related Korean companies, Naviworks has yet to make a profit. Last year, it reported an operating loss of 2.4 billion won ($2 million) on revenues of 8 billion won, versus its 2018 sales of 11.5 billion won. 

But the banking sources expect the startup to make a robust debut on the junior Kosdaq market as was the case with two other loss-making, metaverse stocks -- MAXST Co.and Giantstep Inc.

MAXST, an augmented reality software developer, was trading at 65,500 won on Thursday morning with a market capitalization of 560 billion won. The price has more than quadrupled from its listing price of 15,000 won last July, but was down 34% from its record-high of 99,500 won touched late last month. 

With a market cap of 1.3 trillion won, Giantstep, a visual effects studio for commercials and movies, was quoted at 128,400 won on Thursday morning, more than a tenfold increase from its IPO price of 11,000 won.

But it declined 25% from its peak of 172,000 won hit last month, indicating the hype surrounding the metaverse stocks started cooling.

Write to Ye-jin Jun at ace@hankyung.com
Yeonhee Kim edited this article.
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