One Store becomes fifth Korean IPO dropout this year

One Store Co., South Korea's homegrown app store, on Wednesday canceled its initial public offering on the Korea Exchange, after its shares failed to draw as strong demand from institutional investors as expected.

Tailim Paper Co., the country's largest corrugated carboard maker, also withdrew its IPO bid, underlining rapidly cooling investor sentiment. 

Their IPO cancellation comes after SK Shieldus Co., a security service provider, abandoned its IPO due to weak demand.

During the May 9-10 bookbuilding, One Store failed to attract institutional investors enough to sell 5 million shares, or 75% of its shares on offer, according to sources with knowledge of the matter.

A majority of institutional bidders put down 25,000 won ($20) per share for One Store, 27% below the bottom end of its indicative range of 34,300-41,700 won. 

To proceed with its IPO, One Store tapped institutional investors that suggested prices below 25,000 won after the bookbuilding closed, but failed to drum up their interest.

The aborted IPO will delay its financial investor's exit. A consortium of SKS Private Equity and Kiwoom Securities Co., called SKS/Kiwoom Pioneer, had planned to unload 1.9 million shares.

The consortium holds a 17.7% stake in One Store, since they bought 3.9 million One Store shares for 25,185 won apiece back in November 2019.

SK Square is its largest shareholder of the homegrown app store with a 47.5% stake, followed by Naver with a 25%. 

For Tailim Paper, wholly owned by Sae-A Trading Co., the bidding price was below the price band of 19,000-22,000 won.
 
Since the start of this year, Hyundai Engineering Co. and pharmaceutical company Voronoi Inc. have also cancelled their IPOs.

Write to Ye-Jin Jun at ace@hankyung.com
Yeonhee Kim edited this article