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Photo = Yonhap news |
[Alpha Biz= Kim Sangjin] The Born Korea, led by Baek Jong-won, has been struggling with poor stock performance following its IPO. Despite successfully listing on the KOSPI, leveraging its high brand recognition and growth potential, the stock has faced a continuous decline, contrary to initial expectations.
According to the Korea Exchange on Sunday, The Born Korea’s stock closed at 32,100 KRW, down 0.77% from the previous day. This is a 50.2% drop from the peak of 64,500 KRW recorded on the day of its IPO. The company’s market capitalization, which reached up to 9.453 trillion KRW at the time of listing, has now decreased to 4.705 trillion KRW.
When it went public in November last year, The Born Korea set the offering price at 34,000 KRW per share, and the stock closed its first day at 51,400 KRW, attracting significant attention. During the day, the stock even rose to 64,500 KRW, largely driven by the influence of Baek Jong-won’s brand power and the popularity of the Netflix show Black & White Chef.
However, after the listing, the gap between market expectations and the actual stock price became evident, causing the stock to fall. Along with the slowdown in the IPO market, investor expectations were dampened, and the stock has remained below the offering price.
The Born Korea, aiming for continuous growth through a diverse business portfolio beyond the foodservice industry, has been facing the challenge of stabilizing its stock price. Last year, the company posted record revenue of 410.7 billion KRW, with operating profit expected to reach 31.6 billion KRW, the highest in its history. Its average annual revenue growth rate from 2020 to 2023 is 39.7%.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
