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IPOs

Jeju Beer gets the nod for H1 Kosdaq listing

By Feb 26, 2021 (Gmt+09:00)

Jeju Beer gets the nod for H1 Kosdaq listing


South Korea’s leading craft beer maker Jeju Beer Co. is set to go public in the first half of this year, following the Korea Exchange's approval of the company's preliminary listing application filed last November.

Despite falling short of Kosdaq market listing requirements, Jeju Beer was able to receive approval on Feb. 25 thanks to the so-called "Tesla policy," whereby companies with strong growth potential can obtain special listing approval despite being in the red.

The term was coined after Tesla Motors, in a deficit when it went public, went on to achieve monumental success.

To qualify for the policy, a company should have a market capitalization of over 30 billion won ($27 million) and over 10 billion won in revenue. Also, a company with over 3 billion won in sales with an average growth rate of 20% in the last two years can qualify.

Jeju Beer's performance far exceeds the Tesla policy requirements. Last year, the company posted 32 billion won in sales, more than double its revenue of 13 billion won in 2019 -- an impressive performance amid the global pandemic.

The securities industry estimates Jeju Beer’s enterprise value to be in the 100 billion won ($89 million) range based on the valuation it received last September from the 14 billion won pre-IPO placement, which attracted existing investors such as Wooshin Venture Investment Corp. and Stone Bridge Ventures.

The company's financial investors have converted their holdings of preferred shares and bonds into common shares of Jeju Beer, as they ready to pocket returns upon the company's listing.

Jeju Beer plans to sell 8.37 million shares, or 15% of its total holdings. The company will file the securities registration in March to kick off the official process. Daishin Securities is the IPO manager.

Jeju Beer's collaboration with Highland Park, the Imperial Stout Barrel Series
Jeju Beer's collaboration with Highland Park, the Imperial Stout Barrel Series


Jeju Beer plans to use the IPO proceeds to expand its operations. The company is set to complete its brewery extension during the first quarter, raising the annual production volume nearly sixfold to 20 million liters.

Founded in 2015 on Jeju, Korea's largest island, the company adopted the recipe of Brooklyn Brewery, a top craft brewer in New York. Jeju Beer is the leading domestic craft beer maker in terms of sales and market share, followed by The Booth Brewing Co. and Amazing Brewing Company.

The company has highlighted its solid footing in the fast-growing craft beer market, becoming the first craft beer to be sold in all of the top five convenience stores in Korea. Jeju Beer offers unique product designs that reflect the regional characteristics of Jeju, alongside unique promotional events and activities that set the company apart from traditional breweries.

Aside from its own marketing activities, Jeju Beer has collaborated with companies in other sectors, such as co-developing a pale ale, Our Ale, with Hyundai Card and launching an Imperial stout series in partnership with the Scottish whisky brand Highland Park.


Write to Ye-jin Jun at ace@hankyung.com

Danbee Lee edited this article.

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