TheBorn Korea Inc., a leading South Korean food and beverage group operated by TV celebrity and chef Paik Jong-won, has filed for a preliminary review of its initial public offering plan to go public by the end of this year.
The company submitted an IPO application to the Korea Exchange on Wednesday.
Korea Investment & Securities Co. and NH Investment & Securities Co. will manage the IPO.
If all things go to plan, TheBorn Korea will receive subscriptions from retail investors in the third quarter and its shares will start trading on the main Kospi bourse by year-end, company officials said.
Established in January 1994 by Paik, also spelled Baek Jong-won in local media, TheBorn Korea operates 25 restaurant and café brands in domestic and global markets, including Bornga, Saemaeul Restaurant, Paik’s Bibim, Hanshin Pocha and café franchise Paik’s Coffee. It also operates Hotel TheBorn Jeju on the resort island of Jeju.
(Graphics by Sunny Park) The company is relaunching its IPO after it withdrew its plan in 2018 amid tepid investor interest in the domestic food and beverage industry. Korea Investment and NH Investment also handled the IPO plan at the time.
ENTERPRISE VALUE
Investment banking industry officials estimate TheBorn Korea’s corporate value at 350 billion-400 billion won ($255 million-$291 million).
After obtaining the IPO approval from the exchange, the company plans to float some 2 million shares, or 15% of its total outstanding shares. New shares will be floated without existing shareholders selling their shares during the public offering.
The company said proceeds from the share sale will go to its retail and franchise expansions.
Paik Jong-won, founder and CEO of TheBorn Korea, a food and beverage chain operator Paik, founder and chief executive of TheBorn Korea, owns a 76.69% stake in the company as of the end of 2023, followed by Vice President Kang Seok-won, who holds a 21.09% stake.
The food and beverage chain operator posted 25.6 billion won in operating profit in 2023, down 0.6% from the previous year. Its sales rose 45.5% on-year to 410.7 billion won last year. Net profit gained 31% to 20.9 billion won.
Market watchers say TheBorn Korea’s IPO might not be easy as share prices of local peers such as fried-chicken franchise Kyochon F&B Co., pizza chain operator Daesan F&B Inc. and restaurant chain Didim E&F have been on a downward trend since their IPOs.
Korean homegrown burger and chicken brand Mom's Touch & Co. delisted in 2022, six years after going public.
Write to Seok-Cheol Choi at dolsoi@hankyung.com In-Soo Nam edited this article.
