‘E-commerce Yua-dong Fashion’ New Kids On, Full-Scale Push for KOSDAQ Listing

New Kids On, a specialized e-commerce company in infant and children's fashion led by CEO Joo Chun-seop, announced on the 8th that it will actively pursue a KOSDAQ listing through a merger with KB No.28 SPAC.

New Kids On received preliminary approval for listing from the Korea Exchange (KRX) on the 20th of last month and submitted a securities registration statement to the Financial Services Commission on the 28th of the same month.

The merger price per share between New Kids On and KB No.28 SPAC is 10,915 KRW and 2,000 KRW respectively, with a merger ratio of 1 to 0.1832341. After the merger, the total number of issued shares will be 7,997,049. The shareholders' meeting to approve the merger will be held on May 22, the merger date is scheduled for June 24, and the expected listing date is July.

CEO Joo Chun-seop of New Kids On stated, “Despite the declining birth rate, per capita spending on infants and children is increasing, and as consumption for infants and children is centered on e-commerce due to the trend of balancing work and childcare, our business opportunities are steadily growing. We will continue to grow based on high-quality products that combine design, safety, and functionality at reasonable prices and aim to become a global infant and children's fashion company.”

Founded in 2013, New Kids On is an e-commerce specialized infant and children's company that sells differentiated designs and reasonably priced infant and children's products online. It owns a total of 10 infant and children's fashion brands including JELISPOON, milkmile, and mollimelli, and in 2021 launched the organic skincare brand for infants and toddlers, ORGABON, expanding its business into cosmetics.

New Kids On has increased its market recognition by continuously releasing collaboration products with global character IPs (intellectual property) such as Carebears, Disney, Esther Bunny, LINE FRIENDS, and Sanrio. It has maximized customer touchpoints by entering major e-commerce platforms such as Coupang, Kakao, and Musinsa, and also sells products through its Naver brand store and its integrated brand mall, Newkiki.

New Kids On’s performance last year showed sales of 50.4 billion KRW, operating profit of 4.5 billion KRW, and net profit of 2.2 billion KRW, representing significant increases of 10%, 73%, and 57% respectively compared to the same period the previous year.

Through this merger listing, New Kids On plans to utilize the 11.5 billion KRW in funds raised to secure new growth engines by ▲constructing a logistics center ▲converting its own mall Newkiki to overseas platforms and strengthening overseas marketing ▲launching new brands of baby products.