'Culinary Class Wars' judge kicks off IPO poised to rake in millions

Theborn Korea, led by Paik Jong-won, opened investor subscriptions ahead of its Nov. 6 IPO

Theborn Korea CEO and founder Paik Jong-won speaks at a press conference about the company’s initial public offering (IPO) at Conrad Seoul in Yeouido, western Seoul, on Monday. [NEWS1]

Food and beverage company Theborn Korea, headed by “Culinary Class Wars” judge Paik Jong-won, opened subscription for individual investors ahead of its Kospi listing, a deal that is poised to generate $215 million for the Netflix star. The retail subscription period runs Monday through Tuesday, and the company is scheduled to make its stock market debut on Nov. 6.

The company conducted a demand forecast for institutional investors on Oct. 25, during which its initial public offering (IPO) raised a modest 102 billion won but priced 21 percent above the upper limit of its market range with a market cap of 491.8 billion won ($355.3 million). Shares were priced at 34,000 won. The company plans to use the funds to further expand to international markets, as well as continue to develop locally, founder and CEO Paik said in a news conference at Conrad Seoul, a hotel in Yeouido, western Seoul. That growth will include additional overseas stores, investments in food tech including automated kitchens and diversification of business-to-business channels as the firm looks to supply ingredients for military and enterprise clients and expand to online platforms, according to the company's news release.

Theborn Korea currently operates around 25 food and beverage franchises including Paik’s Coffee, Hong Kong Banjeom and Saemaeul Sikdang. There are 2,917 shops under the brand in Korea and 149 overseas stores in 14 other countries.

Financial advisers Korea Investment & Securities and NH Investment & Securities are managing the IPO. Paik will retain a 61 percent stake in the company.

While Theborn Korea’s global business, a beneficiary of the growing popularity of Korean food overseas and the success of cash cow Paik’s Coffee, is promising, upcoming regulations may pose a risk, according to Hanwha Investment & Securities analyst Han Yu-jung.

Potential legislation mandating more transparent transactions between franchisers and stores could impact Theborn Korea’s restaurant business — which accounts for the majority of its sales — if it drives down the prices of the materials it supplies or leads franchisees to make fewer orders, Han said.

Theborn Korea recorded 410.7 billion won ($296.6 million) in sales last year, its largest figure yet. Its restaurant franchise business accounted for 85.9 percent of those sales, of which sales of ingredients to franchisees accounted for 88 percent. Its retail business accounted for 11.2 percent of that total and its hotel business 2.2 percent. Its compound annual growth rate from 2020 to 2023 was 39.7 percent.

The company, established in 1994, also sells ready-made meals, processed goods and sauces to online and offline retailers; manufactures and retails cooking utensils; imports alcoholic drinks; runs a hotel in Jeju; and operates an entertainment subsidiary that manages Paik’s media appearances.

Paik has also worked with regional governments to revitalize tourism and traditional markets, as documented in his YouTube series “Paik Jong Won, Becoming a Market” (2023).

“Theborn Korea has been able to grow into a comprehensive food company with businesses in restaurants, hotels and retail thanks to solid cooperation from its franchisees since the very beginning,” he said, according to the company’s news release.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]