Sono International seeks IPO in 2025 with $2.1 billion in corporate value

South Korea’s top resort operator Sono International Co. is seeking an initial public offering of its shares on the Korean market next year, rebooting its IPO plan scrapped in 2019 due to the COVID-19 pandemic.

According to investment banking industry sources on Thursday, Sono International, the holding firm of Sono Hospitality Group, is preparing for a Kospi IPO in the first half of 2025.

With the IPO, Sono International aims to confirm its enterprise value, estimated at over 3 trillion won ($2.1 billion), sources said.

Mirae Asset Securities Co. is the lead manager of its IPO.

Sono Hospitality Group, formerly Daemyung Sono Group, is the largest resort operator in Korea, It operates 18 hotels and resorts nationwide and offers over 11,000 rooms.

The group’s operations include Sono Hotels & Resorts, Sol Beach Hotel & Resort, Vivaldi Park Ski World, Vivaldi Park Ocean World, golf courses and yacht clubs.

IN PURSUIT OF LOW-COST CARRIERS

Sono Hospitality Group also seeks to acquire a controlling stake in at least one Korean low-cost carrier to create synergy with its hotels and resorts business.

In October, Sono Hospitality acquired an 11% stake in Air Premia Inc. from Seoul-based private equity firm JC Partners for 53.7 billion won, plus a call option to buy an additional 11% stake in the budget carrier by the end of June 2025.

The Air Premia deal came after the hospitality group purchased a 26.77% stake in T’way Air Co. from another Seoul-based private equity firm JKL Partners in two share transactions in July and August. It is now T'way's No. 2 shareholder.

Sono has also been aggressive with its acquisitions of hotels and resorts overseas.

Early this year, Sono Hospitality Group acquired Hotel Dame Des Arts in Saint Germain-des-Prés, Paris and a 100% stake in Hawaii-based Waikiki Resort Hotel Inc. from Hanjin KAL Corp. in April.

Between 2022 and 2023, Sono International purchased The Normandy Hotel in Washington, D.C. and 33 Hotel, New York City, Seaport.

SONO’S LARGEST SHAREHOLDERS

As of 2023, Sono International’s largest shareholder is Park Chun-hee, the chairwoman of Sono Hospitality Group, with a 33.24% stake.

Chairwoman Park, the wife of the late honorary Chairman Seo Hong-song, took the helm of the group after her husband’s sudden death.

Their son Seo Jun-hyuk holds a 28.96% stake in Sono International, making him the second-largest shareholder.

Sono International posted 62.6 billion won in net profit on sales of 1.35 trillion won in sales last year.

MNC CUTS IPO PRICE

Meanwhile, MNC Solution Co., a Korean company specializing in motion control parts used in the defense industry, conducted bookbuilding with institutional investors last month.

Through the process of gauging investor demand, the company set the final IPO price at 65,000 won per share – 19% lower than the bottom end of its indicative IPO price range between 80,000 won and 93,300 won earlier.

The company has also slashed the number of its IPO shares by 20% to 1.2 million from 1.5 million.

The bookbuilding attracted 198 domestic and foreign institutional investors, posting a competition ratio of 8.18 to 1.

Nearly 80% of the institutions placed orders at prices below the lower end of the IPO price range.

KB Securities Co. is its IPO lead manager.

MNC Solution is the last Korean company set to list on the Korean bourse this year.

The company is scheduled for a Kospi debut on Dec. 16 following retail subscriptions for two days from Dec. 5.

Write to Jeong-Cheol Bae and Seok-Cheol Choi at bjc@hankyung.com

In-Soo Nam edited this article.