Creatz sees lukewarm IPO interest with 6.9-to-1 subscription ratio

Golf simulator company Creatz recorded a 6.92-to-1 subscription ratio during its general investor public subscription from the 20th to the 21st. Despite high institutional demand forecasting participation, most institutions committed to only 5,000 shares for a 15-day lock-up period.

Golf simulator company Creatz has received a lackluster performance in its general investor public subscription conducted ahead of its KOSDAQ listing. While the company is expanding its business into AI analysis and subscription services based on its growth in the North American market, investors remained cautious, showing a gap between growth expectations and pricing expectations.

Creatz conducted the general investor subscription through Samsung Securities from the 20th to the 21st. The subscription competition ratio was recorded at 6.92-to-1, with deposits totaling approximately 18.2 billion won. The allocation for general investors is 350,000 shares, which represents 25% of the total 1.4 million shares offered. The final offering price is set at 15,000 won, bringing the total offering amount to 21 billion won.

Previously, during the institutional investor demand forecasting held from the 12th to the 16th, 831 institutions participated, resulting in a competition ratio of 240.46-to-1. However, a conservative evaluation regarding price prevailed, as 67.5% of the requested volume was concentrated at or below the lower end of the desired price band (15,000–18,000 won).

The willingness of institutional investors to hold shares was also limited. Out of the 252.49 million shares requested, only 5,000 shares were committed to mandatory holding, with a lock-up period of only 15 days. In effect, most institutions have no restrictions on selling immediately after listing. Consequently, the lead manager, Samsung Securities, plans to acquire an additional 14,000 shares, representing 1% of the offering, and hold them for at least six months after the listing.

The volume of shares available for distribution immediately after listing is 5,176,832 shares, or 39.43% of the total planned shares. This includes shares held by existing shareholders in addition to the offering shares, which could act as selling pressure in the early stages of listing. Shares held by the largest shareholder, CEO Seok Jae-ho, and his relatives (4,805,000 shares) are subject to a mandatory holding period of 2 years and 6 months, while shares held by registered executive Choi Ik-hyeon (1,369,000 shares) are subject to a 2-year holding period. Additionally, shares that could be issued through unexercised stock options account for 4.62% of the total shares after the offering (607,215 shares), presenting a possibility of equity dilution upon future exercise.

Risks regarding disclosure and internal controls also remain. Creatz confirmed that it had failed to submit a securities report during a past transaction of existing shares between shareholders and voluntarily reported this to the Financial Supervisory Service in March this year. While an external legal review determined a high possibility of fines being imposed, the actual sanctions and their level will depend on the results of the investigation by financial authorities. The company also has a history of restating its 2024 financial statements, necessitating stable operation of its internal control system and accuracy in disclosures following the listing.

Creatz Business Analysis

Creatz is a company that develops and manufactures high-speed camera-based golf launch monitors. A launch monitor is equipment that measures golf ball speed, spin rate, and club movement to analyze distance and flight trajectory. Centered around the 'UNEEKOR' brand, the company sells ceiling-mounted and portable products, and also operates golf simulation software, indoor practice ranges, and a putter business.

Its core competitiveness lies in its independently developed image analysis technology. 'Dimple Optics' is a technology that recognizes the surface of a standard golf ball without separate markings to measure spin rate, while 'Club Optics' analyzes club movement and impact points. Through the 'EYE' and 'EYE MINI' series applying these technologies, the company is targeting both the professional equipment market and the individual consumer market.

The primary market is North America. Since establishing a US subsidiary in 2015, the company has expanded local sales, and in 2025, 79.9% of total consolidated revenue was generated overseas. The proportion of US revenue alone reached 77.0%. The growth of the business is driven by the spread of 'off-course golf' in the United States, where indoor golf and home simulators are enjoyed away from the field. However, due to high dependence on the US market, the company is susceptible to changes in local consumer sentiment and tariff or trade policies.

The business model is also expanding from equipment sales to software subscriptions. 'AI Trainer,' launched last April, provides real-time coaching by analyzing swing data, and 'GameDay' supports online golf rounds. Subscription software revenue increased from 400 million won in 2023 to 2.5 billion won in 2025. The company plans to secure recurring subscription revenue based on existing launch monitor users and enter the North American commercial facility market. However, as both businesses are in their early stages, it remains uncertain whether they will establish themselves as stable revenue sources.

Intensifying competition is a burden factor. In the global market, companies such as TrackMan and Foresight Sports compete, and existing radar-based equipment manufacturers are also expanding their camera-based products. To respond to competition, Creatz has previously reduced the selling price of its flagship EYE XO from $10,000 to $8,000 and the EYE XO2 from $14,000 to $11,000. If competitors continue to release new products and mid-to-low-end products improve in performance, additional price reduction pressure may occur.

There is also uncertainty regarding the expansion of overseas business. Following the United States, Japan, and China, the company established a UK subsidiary at the end of last year, but the European business is still in the early stages of building an organization and sales system. There is also the possibility of procurement disruptions for core components such as image sensors and semiconductors. In particular, the component procurement structure through the Chinese subsidiary is exposed to external variables such as US-China trade conflicts and export controls.

Creatz Performance and Fund Usage Plan

Creatz expanded its scale by exceeding 100 billion won in revenue last year, but its growth momentum slowed down in the first half of this year. On a consolidated basis, revenue for the first half of the year was 39.2 billion won, a 5.7% decrease compared to the same period last year, and operating profit was 2.1 billion won, a 62.3% decrease. The operating profit margin also fell to 5.5% from 13.7% in the same period last year.

The decline in profitability was affected by the burden of costs. While revenue decreased, the cost of goods sold actually increased, causing the gross profit margin to drop to 60.6% from 66.0% in the same period last year. Selling, general and administrative expenses also remained at a similar level to the first half of last year, leading to a decrease in operating profit.

On the other hand, net profit increased. Net profit for the first half of this year was 5.7 billion won, an increase from 3.4 billion won in the same period last year. This was due to the expansion of financial income despite the decrease in operating profit. In particular, non-operating income supported the net profit as foreign exchange gains and foreign currency translation gains were reflected. However, since profits due to exchange rates are volatile, it is necessary to distinguish them from the improvement in the profitability of operating activities itself.

Cash flow and financial structure appear relatively stable. In the first half of this year, cash flow from operating activities recorded a net inflow of 5.7 billion won. While cash and cash equivalents decreased from 38.2 billion won at the end of last year to 27.6 billion won, including short-term financial instruments of 47.4 billion won, the company holds liquidity of approximately 75 billion won. Total liabilities also decreased from 31.3 billion won at the end of last year to 24.1 billion won.

Creatz plans to invest the approximately 20.9 billion won in public offering funds secured through its KOSDAQ listing into technology company investments, research and development (R&D), and the expansion of its North American business. Specifically, it has allocated 7.7 billion won for the acquisition of securities of other corporations, 5 billion won for R&D, 4.2 billion won for operating funds, and 4 billion won for facility funds. A notable feature is that about 37% of the total public offering funds will be used for investments in external companies.

The funds for the acquisition of securities of other corporations, which account for the largest portion, will be used for the investment and acquisition of companies related to golf simulation software and commercial solutions. The company is reviewing overseas companies in the United Kingdom, the United States, and Canada as candidates, but the specific acquisition targets have not been finalized. The 5 billion won in R&D funds will be invested in advancing next-generation launch monitors and ground-installed products, as well as partial in-house development of AI Large Language Models (LLM).

Approximately 8.2 billion won will also be used to expand the business base in North America. 2 billion won each has been allocated to the expansion of a local R&D center and a logistics center in the United States, and the remaining approximately 4.2 billion won will be used for securing local personnel, building experience spaces, and marketing to enter the commercial golf facility market. This is a plan to expand the business scope beyond the sale of personal equipment into the commercial market.

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