Baek Jong-won's 30-Year Aspiration... Will The Born Korea's IPO Be Delayed?

Under Preliminary Listing Review Regulations, Must Complete Within 45 Business Days
Listing Committee Meeting Not Held Within Listing Review Deadline

The preliminary review for the IPO of Theborn Korea, which has been pursuing a stock market listing to mark its 30th anniversary this year, has been postponed. According to the Korea Exchange on the 5th, the preliminary review committee for Theborn Korea's listing has been delayed. Earlier, Theborn Korea submitted an application for a preliminary review for listing on the Korea Composite Stock Price Index (KOSPI) market to the Korea Exchange on May 29. According to regulations, the preliminary review, which is the first hurdle for listing, must be completed within 45 business days. Considering that Theborn Korea submitted the preliminary review application on May 29, the approval decision should have been made by the end of last month.

The preliminary review for the IPO of Theborn Korea, which has been pursuing a stock market listing to mark its 30th anniversary this year, has been postponed.
[Photo by Asia Economy]

The Korea Exchange did not disclose the exact reason for the postponement of the preliminary review, and Theborn Korea also remained tight-lipped. However, some speculate that the controversy surrounding 'Yeondon Bolkatsu' is the cause. The Exchange places significant importance on qualitative review criteria during the preliminary review to decide on the listing. The qualitative review criteria are to determine whether the company is suitable as a listed company and are divided into business continuity, management transparency, management stability, and investor protection.

This includes 'litigation and disputes.' If there are significant lawsuits or disputes, business management may not proceed smoothly. On the other hand, according to the Korea Exchange's 'KOSPI and KOSDAQ Listing Preliminary Review Results' data, the average duration of preliminary reviews for KOSDAQ market listings this year was 106.3 business days as of the end of May, leading to analysis that this is a typical 'extension' of the review period.

Meanwhile, Theborn Korea launched the 'Wonjo Ssambapjip' brand in 1993 and officially started its food service franchise business by establishing a corporation in 1994. It currently owns various food service brands such as 'Hongkong Banjeom,' 'Baekboy Pizza,' 'Baekdabang,' 'Hanshin Pocha,' 'Saemaeul Sikdang,' and 'Rolling Pasta.'

Theborn Korea attempted to go public once in 2018 but postponed the listing due to the impact of the COVID-19 pandemic. Theborn Korea's shareholding structure has CEO Baek as the largest shareholder with 76.69%, and Executive Director Kang Seok-won as the second-largest shareholder with 21.09%. Last year, Theborn Korea recorded its highest-ever sales of 410.7 billion KRW, a 45.5% increase from the previous year. Operating profit was 25.6 billion KRW, a 0.6% decrease.