AvioCast Inc., a leading precision aerospace casting manufacturer in Taiwan, has delivered steady growth in operations and profitability in recent years, supported by increasing demand in the global aerospace market and stronger Group-wide resource integration. To support the next stage of business expansion and capital investment while further strengthening its financial structure, the company has formally initiated the IPO advisory process and is preparing to enter the capital market.
AvioCast currently has paid-in capital of NT$268 million. Since Global Tek Fabrication Co., Ltd. (TWSE: 3665) invested in and assumed management control of the company in 2021, the two companies have continued to deepen business and technical integration. Global Tek currently holds a 59.56% stake in AvioCast, and total controllable ownership exceeds 70% when the holdings of its major shareholder are included. Taiwan’s National Development Fund is also an important institutional shareholder of AvioCast.
To establish a sound ownership structure and strengthen working capital, AvioCast plans to engage a securities firm as its IPO advisor and conduct a cash capital increase to raise paid-in capital to NT$300 million. Depending on future business expansion, the company plans to further increase capital to NT$400 million and proceed with applications for public issuance and Emerging Stock Board registration.
Core Technologies and International Certifications Establish a Strong Supply Chain Position
AvioCast is one of the few manufacturers in Taiwan to hold both AS9100 quality management certification and multiple Nadcap accreditations for special processes. The company specializes in the full range of aerospace-grade processes, including precision aluminum alloy investment casting, sand casting, heat treatment, surface treatment, and precision machining. In recent years, AvioCast has also introduced advanced 3D sand-printing technology to shorten product development cycles, overcome conventional tooling limitations, and improve the production efficiency and flexibility of highly complex structural components.
With differentiated strengths in low-pressure casting and sand casting, AvioCast has successfully entered the international Tier 1 aerospace supply chain. Its customers include Honeywell, Safran Group, GE, Sumitomo Precision Products (SPP), Kawasaki Heavy Industries (KHI), and Aerospace Industrial Development Corporation (AIDC). AvioCast is also an important global supplier of APU turbine housings for selected commercial aircraft, including the Boeing 737 and Airbus A320 families.
Deepening Group Synergies and Strengthening Global Operational Flexibility
Global Tek Chairman Huang Ya-Hsing stated that the core strategy behind Global Tek’s investment in AvioCast is to establish a one-stop service platform combining professional casting blanks, precision machining, and specialized post-processing. By combining Global Tek’s expertise in five-axis precision machining with AvioCast’s strengths in precision casting and special processes, the two companies have built a large-scale, highly competitive aerospace manufacturing platform.
As the global aviation industry continues its strong recovery, AvioCast and Global Tek will use flexible global resource allocation and strategic coordination to strengthen supply chain management. As the company continues to improve its financial position and operating efficiency, AvioCast will further optimize its product portfolio and advance a transparent and prudent IPO roadmap, creating long-term value for customers, shareholders, and business partners worldwide.
News Source:Yahoo Finance Taiwan: Global Tek’s Aerospace Subsidiary AvioCast to Launch IPO Plan