Korea’s Gordon Ramsay speeds up move for $63 mn IPO

TheBorn Korea Inc., a leading South Korean food and beverage group operated by TV celebrity and chef Paik Jong-won, accelerated its move for an initial public offering as early as November to raise up to 84 billion won ($63.1 million) for business expansions through acquisitions and investments in food tech companies.

TheBorn Korea on Thursday said it submitted a securities registration statement to financial regulators for a listing on the benchmark Kospi.

The operator of 25 restaurant and café brands, as well as a hotel, aims to sell 3 million shares at 23,000 won to 28,000 won apiece to raise between 69 billion won and 84 billion won, according to its regulatory filing. The IPO will likely put its market capitalization at as much as 405 billion won.

The company is scheduled to hold a bookbuilding for institutional investors on Oct. 15-21 to set the listing price, followed by a retail subscription on Oct. 24-25. Korea Investment & Securities Co. and NH Investment & Securities Co. manage the listing.

TheBorn Korea’s founder and chief executive Paik, Gordon Ramsay of South Korea, has a 76.69% stake in the company, or 8.79 million shares, valued up to 236.2 billion won at the time of the IPO. Paik also spelled Baek Jong-won in local media is not allowed to sell 70% of his stake, or 6.15 million shares, in two and half years after the listing and the rest in six months.

EXPANSIONS THROUGH M&A, INVESTMENTS

TheBorn Korea, the franchisor of restaurant chains such as Bornga, plans to use the proceeds to acquire retail and wholesale companies and invest in food tech firms for business expansions.

The company said its businesses are similar to those of major domestic food suppliers such as CJ Seafood Corp., Daesang Corp., Pulmuone Corp. and Shinsegae Food Inc., indicating its goal of becoming a comprehensive food company.

TheBorn Korea is under probe by the country’s antitrust authority due to conflicts with some franchisees of its pork cutlet stores. The franchisor said it may face civil suits against those restaurant owners after the Korea Fair Trade Commission’s investigation in the registration statement.

The company heavily relies on Paik, a famous restauranteur and the main host of popular television series Baek Jong-won’s Alley Restaurant. He produced his own original series Paik’s Spirit with the world’s top streaming service Netflix Inc. in 2021.

“CEO Paik’s absence due to illness or accident could temporarily affect the brand value, profitability and growth potential,” said the company. “CEO Paik is not currently involved in any issues, which could affect his reputation.”

Write to Jeong-Cheol Bae at bjc@hankyung.com
 
Jongwoo Cheon edited this article.