[IPO Spotlight] Innojin, Successful Demand Forecast and Public Offering Subscription

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[Asia Economy Reporter Park Hyungsoo] As newly listed companies enter the domestic stock market with soaring stock prices, Innojin, a developer of hair loss products, has consecutively succeeded in attracting interest in both demand forecasting and public offering subscription.

According to Innojin and the lead underwriter IBK Investment & Securities, the public offering subscription conducted over two days from the 9th to the 10th received deposits totaling 1.6028 trillion KRW. The subscription competition rate recorded was 1,643.9 to 1.

Earlier, Innojin recorded a competition rate of 1,603 to 1 in the demand forecasting conducted for institutional investors from the 6th to the 7th, confirming the public offering price at 3,000 KRW. The underwriter proposed a public offering price range of 2,500 to 3,000 KRW. The majority of institutions participating in the demand forecasting expressed their intention to acquire shares even at 3,000 KRW.

Innojin CEO Lee Kwang-hoon said, "Taking the opportunity of listing on KOSDAQ, we will diversify our business from hair loss to skin beauty," and added, "We will strive to implement active shareholder-friendly policies to enhance shareholder value."

Since its establishment in 2005, Innojin has consistently introduced hair loss treatment solutions. It has launched brands related to hair loss mitigation and skin beauty. Innojin sells its products through hospitals and clinics rather than large marts or stores. The hair loss specialist brand 'Bolbik' is currently supplied to over 4,400 hospitals and clinics nationwide. Unlike conventional hair loss shampoos, it has increased trust by being a product recommended by doctors in hospitals.

By reducing marketing costs and commissions, it maintains a high profit margin. As of the third quarter of last year, cumulative sales reached 6.9 billion KRW, with an operating profit of 1.2 billion KRW. The operating profit margin was 17.8%.

Of the 7.8 billion KRW raised through the initial public offering (IPO), 3.3 billion KRW will be used for research and development. This will be spent on recruiting R&D personnel and developing prototypes of cosmetics and scalp care products. 3.6 billion KRW has been allocated as a budget for product sales through home shopping channels, expected to help increase brand awareness. The remaining funds will be used for marketing costs of baby scalp shampoo and the skincare brand 'Reselby,' which were launched last year.

Companies previously listed on the KOSDAQ market such as Kkumbee, Studio Mir, Obzen, and Mirae Semiconductor saw their stock prices rise 160% compared to the public offering price on the first day of listing. After forming an opening price 100% higher than the public offering price, they succeeded in a 'ttasang'?a surge to the price limit. As newly listed stocks have recently surged, funds are flowing into the IPO market.