[Asia Economy Reporter Chunhee Lee] Ildong Holdings has initiated the sale of shares in its affiliate, Ildong Bioscience.
On the 24th, Ildong Holdings announced that it will sell a portion of its shares in Ildong Bioscience to institutional investors, including NH Investment & Securities. The sale involves 1.6 million shares, equivalent to 20% of the total issued shares (approximately 20 billion KRW). The payment for the first tranche, amounting to 13 billion KRW, will be made within this month, and the remaining second tranche is expected to be completed by the end of November.
An Ildong Holdings representative explained, "This investment attraction through share sales aims to enhance corporate and shareholder value and secure the necessary funds for affiliate operations and business promotion." They also plan to use this opportunity to have the market evaluate the affiliate's share value, induce pre-investment, and thereby activate the upcoming initial public offering (IPO) of Ildong Bioscience.
Ildong Bioscience was established in 2016 as a spin-off from Ildong Pharmaceutical and became an affiliate of Ildong Holdings. It is a specialized company in health functional foods and related materials. Based on proprietary technologies and patents in the probiotics field, including lactic acid bacteria, as well as top-tier dedicated manufacturing facilities and strain data in Korea, it supplies various raw materials and products to leading domestic and international companies, including Ildong Pharmaceutical.
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Ildong Holdings plans to attract investment and fulfill listing requirements with the goal of an Ildong Bioscience IPO in 2023.
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