Korea’s Twosome Place, Ediya coffee chains planning an IPO
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Two South Korean coffee franchises are pushing ahead with IPOs to raise funds for expansion both domestically and globally.
A Twosome Place and Ediya Coffee are seeking to challenge Starbucks Coffee, which dominates the Korean market. It says Ediya aims to be listed by the end of next year, which would be a first for a coffee shop franchise.
Ediya would probably use the new capital to build a roasting factory and to expand overseas. The company ranks third in Korea in terms of sales and first in store numbers. With 2200 stores, it has posted KW150 billion (US$139.5 million) in sales, following Starbucks (more than KW1 trillion) and Twosome (KW200 billion).
Meanwhile, Twosome plans to separate from CJ Foodville to become a subsidiary in February. It is also expected to list on the Seoul bourse to raise more funds.
Korea already has more than 90,000 coffee shops, but is still attracting global chains. US Blue Bottle Coffee has established a local subsidiary and expects to open its first Seoul store in March.
Questions & Answers
Q.Which of the two coffee chains has the most stores in Korea?
Which of the two coffee chains has the most stores in Korea?
Ediya Coffee has the most stores in Korea with 2,200 locations. This figure also makes it the company with the highest number of stores across all coffee chains in the country.
Q.Why does Ediya Coffee want to launch an IPO?
Why does Ediya Coffee want to launch an IPO?
Ediya Coffee plans to launch an IPO to acquire new capital. This funding would primarily be used to construct a roasting factory and facilitate its expansion into international markets.
Q.What is the sales ranking of Ediya Coffee in Korea?
What is the sales ranking of Ediya Coffee in Korea?
Ediya Coffee ranks third in Korea based on its sales figures, achieving KW150 billion. It follows Starbucks, which reported over KW1 trillion, and Twosome, which had KW200 billion in sales.
Q.How does Twosome's sales compare to Starbucks in Korea?
How does Twosome's sales compare to Starbucks in Korea?
Twosome reported sales of KW200 billion, which is significantly lower than Starbucks' more than KW1 trillion. This indicates a substantial difference in their respective market performances in Korea.