Celebrity chef poised for $284.8 million windfall on Korea IPO

SEOUL – A chef made famous by a hit Netflix show has helped boost South Korea’s struggling initial public offering (IPO) market, listing his restaurant chain in a deal that valued his stake at US$215 million (S$284.8 million).

The IPO priced 21 per cent above its marketing range on Oct 25, giving the company, Theborn Korea, an equity value of 492 billion won (S$469.5 million).

While the IPO raised just 102 billion won, making it a modest deal, it offered a rare chance to bet directly on the country’s culinary sector. 

Investment bankers in the nation were hoping the share sale this week by a restaurant franchise chain founded three decades ago by chef Paik Jong-won would lure investors looking for exposure to Korea’s food industry. 

Dubbed South Korea’s Gordon Ramsay, Mr Paik recently featured in Netflix’s Culinary Class Wars show, which topped the streaming company’s global weekly TV chart for non-English titles.

The IPO came at an opportune time, just as Korean food is gaining popularity overseas due to the K-culture wave, which helped create some buzz for the offer ahead of the pricing.

The 58-year-old chef’s profile has grown over time due to his increasing presence in various TV food shows.

Mr Paik has also built up a subscriber fanbase of 6.6 million for his YouTube channel, which features food-related videos, from simple recipes that can be recreated at home, to travelling overseas in search of local cuisines. He will retain about 61 per cent stake in the company after the IPO.

The IPO was priced at 34,000 won, after being offered in a marketing range of 23,000 to 28,000 won per share.

Proceeds will be used in developing new menus and brands, buying stakes in other companies and merger and acquisition, the company said in the prospectus.

Founded in 1994, the chain of restaurants offers affordable menus and casual dining experiences. The company owns some 25 brands including New Maul Restaurant, Hong Kong Banjum and Paik’s Coffee, operating around 2,900 outlets.

That would be a good outcome for South Korea’s IPO market, which has been in doldrums and a stock market that is one of the world’s worst performers. 

The success of Netflix’s unscripted food series has injected life into South Korea’s restaurant industry, bringing it out of the morass following the Covid-19 pandemic lockdowns.

The show created online buzz, prompting memes and colourful characters of the chefs from the culinary battles, drawing a large number of diners to restaurants operated by chefs who featured in the show. 

The reservations at restaurants run by chefs who participated in the series have spiked, while YouTube videos related to the programmes – tiramisu made from convenience store ingredients, for instance – have garnered millions of collective views.

IPOs in the nation have raised US$1.23 billion in 2024, excluding the Theborn deal, more than in all of 2023 but a far cry from the US$15.2 billion in 2021.

Last week, online lender K Bank pulled its offering due to tepid demand, in what would have been South Korea’s biggest listings since January 2022. 

Theborn Korea’s IPO is being managed Korea Investment & Securities Co and NH Investment & Securities Co. BLOOMBERG