Smooth Start for LB Investment Entering KOSDAQ

Recorded Price 65.7% Higher Than IPO Price of 5,100 Won
Next Unicorn Portfolio Including Musinsa, Kurly, and Abley

LB Investment, which entered the KOSDAQ market, failed to achieve 'Ttasant' (opening price formed at twice the IPO price followed by hitting the upper price limit) on its first day of trading but succeeded in reaching the upper price limit.

LB Investment, listed on the 29th, attracted attention by recording 7,170 won in the early morning session, 40.6% higher than the IPO price (5,100 won). In the afternoon, it maintained the 8,000 won range, up 30% from the opening price, and closed at 8,450 won. As a result, it recorded a price 65.7% higher than the IPO price (5,100 won). It is evaluated as having received a favorable report card from the first day.

This result was somewhat expected. As a result of conducting demand forecasting for domestic and foreign institutional investors on the 13th and 14th, the final IPO price was set at the upper end of the desired band, 5,100 won. Then, on the 17th, it succeeded in demand forecasting for the KOSDAQ listing. A total of 1,417 domestic and foreign institutions participated in the demand forecasting, recording a competition rate of 1,298 to 1. It set a record exceeding 1,000 to 1 for the first time among venture capital (VC) IPOs since the introduction of the demand forecasting system.

LB Investment, a venture capital company registered with the Ministry of SMEs and Startups, has invested in 547 promising domestic and foreign companies over 27 years and successfully completed mergers and acquisitions (M&A) and IPOs of 111 companies. It is regarded as a unicorn manufacturer, having nurtured more than 10 companies into unicorns, including HYBE, Pearl Abyss, and Kakao Games. The cumulative investment scale is 1.7 trillion won, and based on stable fund management capabilities, assets under management (AUM) have increased to about 1.2 trillion won.

Currently, it holds a next unicorn portfolio by investing in Musinsa, Kurly, Ably, Musicow, and others. It invested 11.7 billion won and 3 billion won in Musinsa and Kurly, respectively, but has not yet recovered the investment funds. Since the IPO market is frozen, recovery within the year is not easy, but various methods are being considered.

LB Investment is an investment company affiliated with the broader LG group. It is the successor of LG Venture Investment, established in 1996 with investments from LG Electronics and LG Cable. After separating from the group, it joined the LB Group and changed its name to LB Investment in 2008. LB Group is led by Koo Bon-cheon, senior vice chairman and cousin of the late LG Group chairman Koo Bon-moo. Koo Yeon-je, daughter of Koo Bon-joon, chairman of LX Group, also worked as an intern at LB Investment.

Transparent management capabilities are also a point of pride. In 27 years since its establishment, it has never violated any laws or regulations. Based on this, it has secured various limited partners (LPs) and grown into a major venture capital firm. In the industry, it is recognized as a prestigious venture investment firm boasting outstanding investment performance, profitability, and reliability.

Using the funds raised from this IPO and future performance fees and management fees, it plans to further expand the general partner (GP) investment ratio and AUM. Attention is also focused on future new portfolios. Park Ki-ho, CEO of LB Investment, emphasized, “We will actively work to enhance shareholder value.”