SEOUL – A chef made famous by a hit Netflix show has helped boost South Korea’s struggling initial public offering (IPO) market, listing his restaurant chain in a deal that valued his stake at US$215 million (S$284.5 million).
The IPO priced 21 per cent above its marketing range on Oct 25, giving the company, Theborn Korea, an equity value of 492 billion won. While the IPO raised just 102 billion won, making it a modest deal, it offered a rare chance to bet directly on the country’s culinary sector.
Investment bankers in the nation were hoping the share sale this week by a restaurant franchise chain founded three decades ago by chef Paik Jong-won would lure investors looking for exposure to Korea’s food industry.
Dubbed South Korea’s Gordon Ramsay, Mr Paik recently featured in Netflix’s Culinary Class Wars show that topped the streaming company’s global weekly TV chart for non-English titles.
The IPO came at an opportune time, just as Korean food is gaining popularity overseas due to the K-culture wave, that helped create some buzz for the offer ahead of the pricing.
The 58-year old chef’s profile has grown over time due to his increasing presence in various TV food shows. Mr Paik has also built up a subscriber fanbase of 6.6 million for his Youtube channel that features food-related videos, from simple recipes that can be recreated at home, to traveling overseas in search of local cuisines. He will retain about 61 per cent stake in the company after the IPO.
The IPO was priced at 34,000 won, after being offered in a marketing range of 23,000-to-28,000 won per share. Proceeds will be used in developing new menus and brands, buying stakes in other companies and merger and acquisition, the company said in the prospectus.
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