RF Bio Secures 37 Billion KRW Investment: "Accelerating IPO by Leveraging Global Healthcare Network"

On January 19, RFTech announced that it had secured a 37 billion won (approximately 37 billion KRW) investment from global healthcare company Access Bio to strengthen the leadership of its subsidiary, RF Bio, in the K-beauty market and to accelerate its future IPO. This investment will be carried out in the form of a paid-in capital increase, and the collaboration between the two companies is expected to further solidify RF Bio's dominance in the global K-beauty market.

Simultaneously with the investment, RFTech signed a contract to sell approximately half (46.3%) of its total 96.2% stake in RF Bio to Access Bio. The sale price for the 46.3% stake is 20 billion KRW, and including the recovery of outstanding loans, the total cash inflow is expected to reach around 31 billion KRW.

This equity sale is a strategic decision by RFTech, an IT-specialized company, to focus on its core business while accelerating the growth of its subsidiary through a partnership with a healthcare-focused company. An RFTech representative stated, "We will maintain our position as the second-largest shareholder and continue to collaborate with the global healthcare company in marketing and R&D. This strategic equity sale is aimed at speeding up RF Bio's growth and facilitating a faster IPO."

Through the sale of its subsidiary's shares, RFTech plans to further solidify its position in the IT sector, focusing on its existing core businesses such as mobile phone and telecommunications components, as well as its semiconductor equipment subsidiary, Hanju Hightech. At the same time, the strategic partnership with the global healthcare company is expected to enhance RF Bio's corporate value and secure momentum for its IPO.

After the paid-in capital increase, RFTech will hold an 18.4% stake in RF Bio and convertible bonds worth 5 billion KRW. The company expects that, considering similar industry IPO cases, the value of its remaining stake could exceed 55 billion KRW.

Furthermore, taking into account the remaining equity securities and the convertible bonds (CB) it holds, RFTech anticipates an investment return more than three times its original acquisition price of 21.5 billion KRW for RF Bio, resulting in an investment gain of over 60 billion KRW. The company stated that even after the strategic equity sale, the value of its stake in RF Bio will continue to be highlighted as an affiliate.