South Korea’s largest health and beauty chain is preparing for an IPO (Initial Public Offering) in 2021, with the aim to join the stock market in 2022.
A move to drive future growth
Koo Chang-geun, CEO of Olive Young, in his letter to employees said the company will start preparing for an IPO next year with the aim to list on the stock market in 2022.
CJ Group, the parent company of Oliver Young, is currently recruiting for pre-IPO funders, eyeing to sell around 20% to 30% of the owner family’s stake.
Koo said that the move would allow Olive Young to pursue growth opportunities in the future. CJ Group will not sell any of the 55% stake it holds, and the pre-IPO is not to sell management rights.
Olive Young has been faring well despite the overall slowdown in local consumption. It is estimated that it earned KRW87.9 bn (US$74m) in operating income last year, up by 81% compared to a year earlier.