Paik Jong-won's Theborn Korea closes 52% up on market debut

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Paik Jong-won's Theborn Korea closes 52% up on market debut

Published: 06 Nov. 2024, 16:15 Updated: 06 Nov. 2024, 17:41

Theborn Korea CEO Paik Jong-won hits a drum during a ceremony for the listing of the company on the Kospi in Yeouido, western Seoul, on Wednesday. [YONHAP]

Theborn Korea, an F&B company founded by “Culinary Class Wars” judge Paik Jong-won, made a successful Kospi debut on Tuesday, closing at more than 50 percent above its initial public offering (IPO) price.

The company’s shares opened at 46,350 won ($33.10), a 36.32 percent jump from its opening price of 34,000 won. They reached as high as 64,500 won, marking a 89.71 percent increase.

The stock cooled in the afternoon and closed at 51,400 won, 51.18 percent higher than the initial offering price. Trading volume reached approximately 18.46 million shares, the fifth-most on the Kospi that day, with a closing market capitalization of 743.5 billion won.

Theborn Korea operates 25 food and beverage franchises including Paik's Coffee, Hong Kong Ban Jeom and Hansin Pocha. There are 2,917 shops under the brand in Korea and 149 overseas stores in 14 other countries.

A total of 2,216 institutions had previously participated in the company’s book building, with a subscription rate of 734.67 to 1, according to the firm's financial supervisor, Korea Investment & Securities. Shares were decided to be priced at 34,000 won, 21.4 percent over the top of its target range of 23,000 to 28,000 won.

The subscription rate for retail investors reached 772.80 to 1, amassing more than 11.83 trillion won in subscription deposits for its IPO.

Theborn Korea CEO and founder Paik Jong-won speaks at a press conference about the company’s initial public offering (IPO) at Conrad Seoul in Yeouido, western Seoul, on Oct. 28. [NEWS1]

This Kospi debut comes six years after Theborn Korea’s initial application for listing in 2018, which was delayed due to the Covid-19 pandemic.

Alongside its franchise business, Theborn Korea also sells ready-made meals, processed goods and sauces through online and offline channels, while also manufacturing cooking utensils. It runs a hotel on Jeju Island.

Paik has also worked with regional governments to revitalize tourism and traditional markets, as documented in his YouTube series “Paik Jong Won, Becoming a Market” (2023).

Paik will maintain a 61 percent stake in the company.

BY LEE HAY-JUNE, WOO JI-WON [[email protected]]