Aju IB Investment and Wonik Investment Partners Exit Nexteel Investment with 45% IRR

2021 46.5 Billion KRW Investment Joint Venture
44% Internal Rate of Return (IRR) Achieved
Nexteel Performance Improvement, Operating Profit Nearly 10 Times in 2 Years

Aju IB Investment and Wonik Investment Partners have recovered their investment in Nexteel with an internal rate of return (IRR) of 45%.

According to Aju IB Investment, the two companies invested 46.5 billion KRW in Nexteel through the 'Wonik-Aju Turnaround No.1 PEF' in June 2021, and completed the full recovery within three years.

Nexteel is a steel pipe company recognized for its quality in the North American shale gas well casing and oil pipeline sectors. At the time of investment, Nexteel's financial stability was weakened due to the payment of customs deposits. However, its performance rapidly improved due to rising oil prices and increased energy demand. Operating profit soared nearly tenfold from 17 billion KRW in 2021 to 157.3 billion KRW in 2023.

The investment recovery began in June 2022 and was carried out through CB redemption, RCPS conversion, and partial stock sales. At the time of Nexteel's listing, the public offering price was 3.7 times higher than the investment price. After achieving a final IRR of 44%, the 'Wonik-Aju Turnaround No.1 PEF' is scheduled to be dissolved within June.

Aju IB Investment expects a stock price increase due to 'Yanolja,' which is planning a Nasdaq listing in the second half of the year. Aju IB Investment invested 20 billion KRW in Yanolja in 2017.