South Korean health-and-beauty business Olive Young is gearing up for an IPO next year, with the aim to list on the stock market in 2022.
The business owner CJ Corp is currently recruiting for pre-IPO funders and is looking to sell around 20 to 30 percent of the owner’s family’s stake before it goes public, although CJ Group will not sell any of the 55 percent stakes it holds.
Olive Young CEO Koo Chang-geun said the pre-IPO sale would not impact CJ Group’s management rights, and that the move would allow the business to pursue growth opportunities into the future.
Shinhan Investment and Credit Suisse have been listed as joint advisors to the sale, and while there is some chatter that the business could be sold off as a whole, it is more likely that the IPO will be used to secure further funding to boost enterprise value.
The business has long been one of South Korea’s largest beauty firms, seeing operating income grow 81 percent to US$74 million after $1.65 billion in sales last year.
