Daol Investment & Securities to sell venture capital unit to shore up liquidity

[Courtesy of Daol Investment & Securities]

Daol Investment & Securities is selling its venture capital subsidiary Daol Investment to secure liquidity.

The financial firm is selling its 52 percent stake in Daol Investment, which is estimated to be worth 200 billion won ($151 million). The venture capital firm has a market capitalization of 307.5 billion won, based on the closing share price of 3,075 won on Tuesday.

Samil PricewaterhouseCoopers, the lead manager of the sale, has been contacting potential buyers. Large securities firms and financial holding companies are reviewing the sale, according to a source with knowledge of the deal.

Daol Investment & Securities is selling the venture capital firm to overcome liquidity crisis, stemmed from its high exposure in financing real estate projects. The company is also selling its subsidiary in Thailand through a separate deal. Samil PwC is lead manager of that deal as well.

Daol Investment & Securities is reportedly seeking to obtain up to 400 billion won from selling the two subsidiaries. However, industry experts say the price tag may need to be lowered given the venture capital firm‘s current share price.

Daol Investment was listed on Dec. 16, 2021 after selling shares in an initial public offering of 5,800 won a share. The stock closed its first day of trading on Kosdaq at 5,350 won. Since then, it has lost more than 40 percent.

Daol Investment, formerly KTB Networks, was established in 1981. The company is best known for investments in Woowa Brothers, Viva Republica and other successful Korean startups.