South Korea: Jeju Beer preparing to be listed on the KOSDAQ
Jeju Beer is preparing to be listed on the KOSDAQ for the first time in the Korean beer industry within the first half of this year. Jeju Beer is planning to increase its production facilities and lead the market through the IPO, The Jeju Weekly reported on May 10.
On February 25th, the KOSDAQ headquarters of the Korea Exchange approved a preliminary review for the listing of Jeju beer on the KOSDAQ. It will be the first domestic beer company to be listed on the KOSDAQ and the second beer company in 12 years.
Jeju Beer started preparing for the IPO by requesting a preliminary review for listing on the KOSDAQ in November 2020. Public offering stocks amounted to 8,362,000 shares, which is 15% of the 55,995,890 total shares after listing. Daishin Securities is in charge of the listing supervision.
Jeju Beer plans to accelerate growth by increasing corporate value and expanding investment resources by listing on the KOSDAQ. The funds from IPO will respond to increased demand by investment in production and R&D facilities to introduce innovative beer products. Through this, the company aspires to achieve 10 cumulative product lineups within this year, contributing to market diversity and becoming a new game-changer in the Korean beer market.
Jeju Beer was the first in the craft beer industry to enter the top five convenience stores in Korea and increased sales from rapid growth in the four years since its launch. In August 2017, it entered the market and introduced the Jeju Wheat Ale. Since then, it has quickly established the presence in the market by releasing beer after beer, such as Jeju Pellong Ale and Jeju Slice, recording the highest performance last year. Last years sales reached 32 billion won, more than doubling compared to the previous year. During the same period, sales to households increased by three times and sales to entertainment channels by about 1.3 times.
The company plans to respond to increased demand by completing the expansion of the Jeju brewery within the first quarter of this year. After the expansion, Jeju Beers annual beer production will amount to about 20 million litres, reaching three times the initial production volume of 3 million litres in three years.
Recently, Jeju Beer formed a leading partnership with Lotte Chilsung Beverage to create a craft beer cluster and shared their know-how.
Jeju Beer CEO Mun Hyeok-gi said, Jeju Beer is a company that is growing with new and innovative moves that have not been found in the Korean beer market. He added, Through the listing on the KOSDAQ, we will improve corporate credibility, change the ecosystem of the long-stagnant domestic beer market, and become a game-changer leading the market.
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