HK Inno.N IPO priced at top-end of $51 on hottest-ever institutional demand

[Source: HK Inno.N Corp.]

Initial public offering (IPO) of HK Inno.N Corp., a bio and healthcare company in South Korea, is priced at the top end of 59,000 won ($51.06) apiece in the hottest-ever demand for a bio stock in the country’s secondary Kosdaq market.

Its IPO was oversubscribed by 1,871 times from 1,627 institutional investors during the book-building session from July 22 to 26. As a result, the IPO price was set at the highest end of its guidance band of 50,000 won to 59,000 won, allowing it to raise up to 596.9 billion won. Its market capitalization is estimated at 1.7 trillion won.

Of the total offering of 10,117,000 shares, 57 percent are new shares with the rest coming from its largest shareholder Kolmar Korea owning 50.71 percent stake.

Public subscription for HK Inno.N is set from July 29 to 30, and Korea Investment & Securities and Samsung Securities are taking public subscription.

Its Kosdaq debut is scheduled on Aug. 9.

HK Inno.N is known for popular hangover-relief drink Condition in Korea. It has around 160 drugs including K-CAB Tab, its famous gastroesophageal reflux treatment.

Founded in 2014 as CJ Healthcare, the company was spun off from CJ Group and then acquired by Kolmar Korea in 2018. It was renamed HK Inno.N in 2020.

The company reported 87 billion won in operating profit last year, up 20 percent from the previous year, with sales up 11 percent to 598.4 billion won.

The company is developing 16 drug candidates and hopes to license out the novel drugs to about 100 countries by 2028, according to its CEO Kang Seok-hee at an online press conference held last week. “We will become a global top-tier bio health company that leads the industry,” said Kang.

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