Movie star entrepreneur and chef Paik Jong-won’s yearslong effort to listing his meals franchise agency Theborn Korea on the nation’s most important bourse has cleared its first hurdle, but challenges stay because the destiny of the corporate closely relies on his fame.
Supported by a robust model lineup and the rising public profile of its CEO Paik, Theborn Korea handed the preliminary overview for its preliminary public providing on Aug. 30, about three months after submitting its software.
“We’ll proceed diligently with the remaining steps to make sure a clean IPO course of,” a Theborn Korea official stated. “By means of the IPO, we purpose to foster sustainable progress with our franchise companions, whereas increasing into distribution and regional growth tasks to boost shareholder worth.”
Based by Paik in 1994, Theborn Korea is thought for its give attention to reasonably priced menus that includes informal eating dishes and desserts, similar to pork cutlets, jjajangmyeon, pizza, and occasional.
The corporate holds round 25 manufacturers below its umbrella, together with New Maul Restaurant, a Korean bistro specializing in conventional Korean barbecue, Hong Kong Banjum, which makes a speciality of Korean-Chinese language delicacies, and Paik’s Espresso, a espresso franchise famend for its value competitiveness.
The corporate’s franchise manufacturers have constructed a robust presence right here, working roughly 2,900 franchise places nationwide. It has additionally expanded into the processed meals and sauces enterprise and operates a lodge on Jeju Island. In 2023, the corporate posted 410.7 billion gained ($309 million) in gross sales — a rise of over 300 p.c in comparison with 2019.
Particularly, Paik’s in depth media look has contributed to elevating consciousness of his manufacturers. The 58-year-old entrepreneur’s easy and approachable cooking type proven in actuality TV reveals since 2015, mixed along with his enterprise acumen, has made him relatable to a broad viewers.
Extra not too long ago, Paik’s look on the Netflix collection “Culinary Class Wars” additional boosted his recognition. In lower than every week after its launch on Sept. 17, the present had garnered 3.8 million views throughout 18 international locations, topping the worldwide Netflix High 10 Non-English TV Exhibits listing. He additionally runs a YouTube channel that boasts over 6.4 million subscribers.
“Paik’s down-to-earth method to cooking, coupled along with his humorous and insightful commentary, resonated with viewers, reinforcing his picture as a educated but humble professional,” stated Lee Eun-hee, a shopper economics professor at Inha College.
“His varied media appearances have helped draw consideration to Theborn Korea’s public repute in addition to its franchise companies,” Lee added.
Within the meantime, although, Theborn Korea is dealing with regulatory challenges.
In June, franchisees of the corporate’s ball-shaped pork cutlet restaurant model Yeondon Ball Katsu filed complaints with the antitrust watchdog Honest Commerce Fee, accusing the corporate of exaggerating income projections earlier than their franchise contracts. The franchisees claimed that their precise gross sales and income had been a lot decrease than the corporate had initially urged.
Whereas the result of the regulatory investigation continues to be pending, specialists stated that such scrutiny might have vital implications for Theborn Korea’s IPO efforts, citing the potential uncertainty amongst buyers.
“Lately when the corporate has grown quickly, Paik’s recognition has been a big promotional asset for its franchise enterprise. Authorized dangers stemming from disputes with franchisees might pose a menace,” stated a securities trade official who wished to be unnamed.
“Resolving disputes with franchisees and addressing issues raised by regulators can be key to making sure a profitable IPO and continued progress within the aggressive meals trade,” the official added.
Theborn Korea acknowledged that it plans to conduct a book-building course of for institutional buyers in mid-October, with the purpose of finalizing its providing value by the top of the month. The corporate expects to be listed on the Kospi by November, with the purpose of elevating between 69 billion and 84 billion gained via the IPO.
