The Chabi IPO offers a unique refund right, allowing investors to sell shares back at 90% of the IPO price for three months post-listing, capping potential losses at around 10%. The subscription period ran from April 20-21, 2026, with refunds on April 23 and the stock listing on April 29.
What Business Does Chabi Operate?
Chabi, formerly known as Daeyoung Chabi, is a specialized electric vehicle (EV) charging infrastructure company. They handle the entire process from charger development, manufacturing, installation, operation, and after-sales service. With over 5,900 privately owned and operated rapid charging stations, Chabi holds the leading position in South Korea's private rapid charging market. Their proprietary platform software and mobile app enable integrated real-time monitoring and payment services. The company has received recognition for its technological prowess, including three consecutive CES Innovation Awards. This strong technological foundation and market share position Chabi for continued growth in the burgeoning EV sector.
Why Is Chabi Experiencing Losses Despite Revenue Growth?
Chabi's revenue has shown a consistent upward trend, reaching approximately $85 million in 2024 and accumulating around $101.7 million in the first three quarters of 2025. However, operating losses during the same period amounted to approximately $29.6 million, raising concerns among investors. This situation is characteristic of the EV charging infrastructure business, which requires substantial upfront investment. Establishing charging stations involves significant costs for land acquisition, grid connection, and rapid charger installation, often running into hundreds of thousands of dollars per site. The business model anticipates stable charging revenue once the infrastructure is in place, similar to the growth trajectory of companies like Coupang, which also required massive initial investments. Currently, Chabi maintains a stable debt-to-equity ratio of 109.46%.
What Were the Results of Chabi's IPO Demand Forecast and International Investor Sentiment?
Chabi's institutional demand forecast competition rate was 55.23:1, a somewhat subdued performance in the recent IPO market. The final IPO price was set at the lower end of the initial price band (12,300 KRW to 15,300 KRW, approximately $9.10 to $11.30 USD), at 12,300 KRW ($9.10 USD). While domestic institutions cited concerns over the EV market slowdown and operating losses, leading them to offer prices below the lower band, approximately 70% of international institutions proposed prices above the upper band, indicating a divergence in market perspectives. Furthermore, the low rate of mandatory holding commitments (6.49% by quantity) suggests a potential for sell-offs immediately after the stock listing. Investors should consider these factors comprehensively when making investment decisions.
How Does Chabi's IPO Refund Right Work?
As Chabi is listed on the KOSDAQ through the growth-based special listing system, it offers a unique 'refund right' to general subscribers. This provision allows them to sell their shares back to the underwriting securities firm at 90% of the IPO price (11,070 KRW, approximately $8.20 USD) for three months after the listing date, regardless of market fluctuations. This effectively limits potential losses to about 10% in the worst-case scenario. This asymmetric structure, offering upside potential with limited downside risk, can be an attractive feature for investors. It's important to note that this refund right is exclusively available to general subscribers.
What Are the Chabi IPO Subscription Schedule and Underwriter Details?
The Chabi IPO subscription period took place from April 20 to April 21, 2026. The refund date was April 23, and the KOSDAQ listing date was April 29. A total of 9 million new shares were offered, aiming to raise approximately 110.7 billion KRW (about $82 million USD). The lead underwriters were KB Securities and Samsung Securities, with Daishin Securities and Hana Securities serving as joint underwriters. The minimum subscription quantity was 10 shares, requiring a minimum deposit of 61,500 KRW ($45.75 USD) based on a 50% deposit rate. Duplicate IPO subscriptions have been prohibited since 2021, meaning investors could only subscribe through one brokerage, even if they held accounts with multiple firms.
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