Skip to content
  • KOSPI 3013.13 -15.91 -0.52%
  • KOSDAQ 1001.62 -3.73 -0.37%
  • KOSPI200 393.74 -1.67 -0.42%
  • USD/KRW 1181.7 -4.10 -0.35%
  • JPY100/KRW 1,032.73 -4.67 -0.45%
  • EUR/KRW 1,374.97 -1.80 -0.13%
  • CNH/KRW 184.32 -0.08 -0.04%
View Market Snapshot

IPOs

Beauty chain CJ Olive Young to embark on 2022 IPO process

Its IPO expected to pave way for Glenwood PE's exit of 414.1 bn won investment in about one year

By Sep 29, 2021 (Gmt+09:00)

Beauty chain CJ Olive Young to embark on 2022 IPO process

CJ Olive Young, South Korea's largest beauty store chain, is moving ahead with its plan to go public next year, which will likely raise new capital for the parent group's heir apparent Lee Sun-ho, the third-largest shareholder of the company.

Olive Young will send requests for proposals on its initial public offering to brokerage companies this week at the earliest, according to investment banking sources on Wednesday. It plans to select its IPO manager around next month.

Its IPO is expected to put the company's enterprise value at more than 2 trillion won ($1.7 billion), slightly higher than the 1.84 trillion won valued by Glendwood Private Equity when it took a 22.56% stake for 414.1 billion won in March of this year.

It had acquired both existing and new shares at 169,560 won apiece, including part of shares owned by the heir apparent Lee, a senior manager of CJ Jeiljedang Corp.

The Seoul-based PE firm will likely exit the investment through the IPO, while Lee secures fresh capital to boost his ownership in other key units of the group.

Olive Young was spun off from CJ Olive Networks Co., an online and digital marketing services company, in 2019. It has 1,250 outlets across the country, selling a host of multi-brand cosmetics and health supplements with a 50% share of the domestic beauty market.

CJ Corp. controls 51.15% of the health and beauty chain. Last year, its operating profit came to 100.1 billion won on sales of 1.87 trillion won.

CJ Olive Young's Ownership Structure

CJ Corp. 51.15%
Glenwood PE 22.56%
CJ Group heir apparent Lee Sun-ho 11.09%
CJ PowerCast CEO Lee Jae-hwan 4.64%
CJ ENM Vice President Lee Kyung-hoo 4.26%

Meanwhile, CJ CheilJedang said on Tuesday that it was considering various strategic measures for CJ Selecta, a soymilk brand, but nothing has been decided yet. The statement was issued in response to media reports that the company might sell Selecta, which it had acquired jointly with Seoul-based STIC Investments for 360 billion won in 2017.

Write to Jin-sung Kim at jskim1028@hankyung.com

Yeonhee Kim edited this article.

Comment 0

0/300