CJ Olive Young 'halts' IPO process, offers no new timeline

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CJ Olive Young 'halts' IPO process, offers no new timeline

A CJ Olive Young branch in Suji, Gyeonggi. [CJ OLIVE YOUNG]

A CJ Olive Young branch in Suji, Gyeonggi. [CJ OLIVE YOUNG]

 
CJ Olive Young has halted its initial public offering plans, blaming market conditions.
 
It did not give any indication as to when it would be making another run at going public.  
 
The health and beauty company was to apply for a preliminary review with the Korea Exchange this month, but decided not to. It selected Mirae Asset Securities and Morgan Stanley as the underwriters for its initial public offering (IPO) in November last year, originally aiming to go public this year.
 
CJ Olive Young felt as though it would not be properly valued in current market conditions. The Kospi is down 18.4 percent this year.
 
CJ Olive Young had expected a market valuation of 4 trillion won ($3.05 billion) when it announced IPO plans last year. The company logged revenue of 2.12 trillion won last year, up 13 percent on year. It's net profit rose 61.4 percent on year to 95 billion won.  
 
The company confirmed the halt but didn't mention when it will resume the IPO process.
 
The health and beauty store isn't the only company canceling IPOs. Other companies have also been withdrawing their plans as stock prices fall and investor sentiment remains low.
 
Hyundai Oilbank announced on July 20 that it halted its plans to go public, also stating it would be hard to get a proper valuation in the current market. Other companies such as Hyundai Engineering, SK Shieldus and One Store all canceled IPO plans.  
 

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]
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