[Asia Economy Reporter Jang Hyowon] OSP, a specialized manufacturer of organic pet food for companion animals, announced on the 30th that it has finalized its public offering price at the top end of the desired range, 8,400 KRW.
OSP conducted a demand forecast for institutional investors from the 27th to the 28th. As a result, 1,634 domestic and international institutions participated in the subscription of 1,542,000 shares, which is 75% of the total public offering volume. The total number of shares applied for was 2,440,745,000, recording a final competition rate of 1,582.84 to 1.
Notably, among the demand forecast applications, 99.88% (with 6.79% not specifying a price) except for only two cases proposed a public offering price at or above the top end of the desired range, showing strong interest. Accordingly, the company finalized the public offering price at 8,400 KRW.
Kang Jaegu, CEO of OSP, stated, “The continuous expansion of the pet-related market and the trend of preferring premium feed seem to have received a good evaluation from institutional investors. We will repay the trust of those who invested believing in the company’s value and growth potential by growing into a total pet life care platform after listing.”
The total funds raised through this public offering, conducted entirely by issuing new shares, amount to 17.3 billion KRW. The funds will mainly be used for facility investments such as expanding new factories to increase OSP’s main product production capacity (Capa). The company plans to increase its current annual production capacity of 7,100 tons by about three times to achieve a production capacity of 21,500 tons by 2024.
OSP aims to drive mid- to long-term growth by strengthening its own brand (PB) and expanding market share overseas after listing. The company is preparing to launch a new organic functional pet food product, ‘Indigo Bionutrition,’ in October, and will continue to enhance its premium brand by developing functional foods and prescription diets to improve profitability.
Additionally, OSP plans to target the domestic market through a new proprietary online mall and sequentially enter markets with good accessibility via e-commerce such as Southeast Asia, China, and the United States to increase market share globally.
Meanwhile, OSP’s subscription for general investors will be held over two days from October 4 to 5 for 514,000 shares, which is 25% of the total public offering volume. The listing is scheduled for October 14, with Daishin Securities as the lead underwriter.
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