S.Korean health chain CJ Olive Young to raise $1 bln in local IPO (updated)

CJ

19/11/2021 09:28

(Adds details, background, changes dateline to HONG KONG)
    By Scott Murdoch and Heekyong Yang
    HONG KONG, Nov 19 (Reuters) - South Korean health and beauty
chain CJ Olive Young said on Friday it was looking to raise
around $1 billion in an initial public offering, as the company
seeks to tap a booming market for new listings.
    The listing, which two sources aware of the matter say is
set to take place early next year, comes as Korean IPOs have
raised $21.4 billion so far this year, almost seven times the
amount raised a year earlier, according to Refinitiv data.
    CJ Olive Young has appointed Mirae Asset Securities and
Morgan Stanley as the main underwriters on the transaction while
KB Securities and Credit Suisse will act as co-underwriters, a
spokesperson told Reuters.
    A $1 billion fundraising, slated for early next year, would
be double the amount the company was expected to raise,
according to some bankers.
    Mirae Asset Securities  006800.KS , Credit Suisse  CSGN.S 
and Morgan Stanley  MS.N   declined to comment to Reuters. KB
Securities did not immediately respond to a request for comment.
    CJ Olive Young has about 1,200 stores across South Korea,
and delivers its products through a global distribution platform
to 150 countries, according to its website.
    It reported operating profit of 100 billion won ($84.4
million) in 2020, the company's filing showed.
    The largest shareholder is CJ Corp  001040.KS  with a 55.24%
stake as of December 2020, the company's filing showed.
    So far this year, 92 companies have listed in Korea compared
with 59 last year, driven by robust retail demand, Refinitiv
data shows.  urn:newsml:reuters.com:*:nL4N2PH23G
    E-commerce firm Coupang Inc  CPNG.N  raised $4.5 billion
when it listed in New York in March ,while video game developer
Krafton Inc  259960.KS  raised $3.7 billion in its July listing
in Seoul.


 (Reporting by Scott Murdoch in Hong Kong, Heekyong Yang in
Seoul; Editing by Anshuman Daga, David Evans and Emelia
Sithole-Matarise)
 ((Heekyong.Yang@thomsonreuters.com;))