Korean Solutions Firm VECT Clearing Securities Hurdles To Do IPO

October 21, 2024 by Dave Haynes

Language, location and how private companies keep their financials to themselves means it is quite rare to come across data on how digital signage solutions companies do in other parts of the world, so it was interesting to come across a news report about a Korean firm that is planning to go public.

It was also interesting to see how the company, VECT, did about $50 million US in sales in 2023 and is tracking ahead of that for 2024.

VECT is in the process of completing reviews and other regulatory hurdles to do an IPO and trade on the Korean KOSDAQ exchange.

From a report on that listing:

Founded in 2006, VECT offers integrated digital signage solutions, providing end-to-end services from project planning and hardware setup to content creation. Its solutions are utilized across various sectors such as advertising, retail, entertainment, and education. The company is recognized for its strong planning capabilities and advanced signage device expertise, offering customized visual solutions tailored to each client’s needs.

In addition, VECT serves as a domestic distributor for Panasonic’s projector products, offering a wide range of projector models that cater to digital content such as media art and immersive content. Over the past 18 years, VECT has built an extensive project portfolio, serving more than 10,000 clients, including corporations, financial institutions, broadcasters, hotels, public institutions, and schools.

VECT holds numerous patents related to signage devices, including touch screens, multi-video playback, real-time video transmission, and ID generation devices. The company produces and distributes various hardware products such as smart learning and business conference electronic whiteboards, multi-functional controller-equipped electronic lecterns, and transparent film-type LED weather boards.

Last year, VECT posted consolidated revenue of 68.9 billion won and an operating profit of 4 billion won. In the first half of this year, the company achieved 34.9 billion won in revenue and 2.3 billion won in operating profit, continuing its steady growth.

Yoo Chang-soo, CEO of VECT, stated, “We plan to invest the funds raised through the KOSDAQ listing into research and development(R&D) for digital signage devices and content, laying the groundwork to become a global content solutions provider.”

A lot of that would be hardware sales, and operating profit for the company for the first six months of this year equates to $1.7M USD.

The company was formally known as Yuhwan ITEC Co. and switched that to a more global handle, with VECT being short for Virtual Experience ConnecTivity.