CJ Corp unveils plans to open Olive Young up for public investment
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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.
Questions & Answers
Q.When does Olive Young intend to list on the stock market?
When does Olive Young intend to list on the stock market?
Olive Young plans to list on the stock market in 2022. Its owner, CJ Corp, is currently recruiting pre-IPO funders as part of this process.
Q.How much of the owner's family stake is CJ Corp looking to sell before the IPO?
How much of the owner's family stake is CJ Corp looking to sell before the IPO?
CJ Corp aims to sell approximately 20 to 30 percent of the owner's family's stake. This sale is part of the preparation for Olive Young's public listing.
Q.Who are the advisors for the sale process?
Who are the advisors for the sale process?
Shinhan Investment and Credit Suisse have been listed as joint advisors for the sale. They are assisting CJ Corp with the pre-IPO funding and potential public listing.
Q.What was Olive Young's operating income last year?
What was Olive Young's operating income last year?
Last year, Olive Young's operating income grew 81 percent to US$74 million. This was achieved from $1.65 billion in sales, positioning it as a major beauty firm.