Expected Offering Price 7,500~9,000 KRW
Planned Maximum Fundraising of 13.5 Billion KRW
Public Subscription Scheduled for July 27~28
[Asia Economy Reporter Minji Lee] “We will actively target overseas markets to expand our market share in the global medical aesthetic market. The funds raised through the KOSDAQ listing will be invested in research and development to develop innovative medical devices.”
On the 17th, Kim Yong-han, CEO of Iruda, made these remarks about Iruda’s vision and aspirations at an IPO press conference held at the 63 Building in Yeouido, Seoul. Iruda develops medical devices utilizing energy sources such as lasers, radiofrequency (RF), and high-intensity focused ultrasound (HIFU).
The medical aesthetic market is expected to grow annually by more than 9% until 2022. Changes in societal awareness of health, increased demand from the senior population due to aging, and growing interest in beauty among men are anticipated to sustain the growth of the medical aesthetic market.
Iruda’s products are based on technologies utilizing laser, radiofrequency (RF), and high-intensity focused ultrasound (HIFU). The sales composition by product is 40% RF, 30% laser, and 30% others. In 2017, demand for laser products exceeded 40%, but the share decreased as demand for RF product lines increased. CEO Kim Yong-han stated, “RF products receive the best response in the global market,” adding, “They maximize skin beauty treatments by minimizing physical and thermal damage caused by multiple needles penetrating the skin.”
Iruda is better known overseas than domestically. In terms of sales proportion, overseas accounts for 80%, while domestic sales make up about 20%. By region, the company maintains 40% in the United States, 20% in Europe, and 20% in Asia and Oceania.
Last year, the company achieved its highest performance since establishment, with sales of 21.4 billion KRW and operating profit of 2.5 billion KRW, marking increases of 18% and 45% respectively compared to the previous year. The company’s compound annual growth rate since 2016 is approximately 27.8%. CEO Kim said, “Profitability has improved due to the expansion of high value-added products and increased sales of consumables,” and added, “Sales growth continues to be driven by our own brand.”
CEO Kim cited continuous research and development (R&D) as the foundation for Iruda’s growth so far. Currently, R&D personnel account for about one-third of the total employees. Since 2013, the company has maintained an R&D investment ratio of over 10% relative to sales.
Another positive factor is the possession of a global network of key doctors. The company trades with over 60 companies in 48 countries. Particularly, in the U.S., where the company strategically aims to expand sales, it plans to broaden the product lineup sold through the local company Cutera. In addition to the currently sold Secret RF, two products awaiting U.S. Food and Drug Administration (FDA) approval will be added to diversify the product offerings.
CEO Kim plans to diversify the business by entering the disease treatment market based on medical aesthetic technology. Products such as a laser-based treatment device for onychomycosis, an RF-based temporomandibular joint pain treatment device, and a dry eye treatment device are also planned for market release. Kim Yong-han explained, “Healer 106, an onychomycosis treatment launched this year, will positively impact the company’s profits,” and added, “While focusing on overseas markets, we are also considering entering the domestic market for therapeutic products.”
Iruda plans to offer 1.5 million shares in this IPO, with an expected offering price of 7,500 to 9,000 KRW per share, aiming to raise approximately 11.2 to 13.5 billion KRW. Demand forecasting for domestic and foreign institutional investors will be conducted over two days from the 20th to the 21st, followed by public subscription from the 27th to the 28th.
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