Jincostec sets $15M IPO after 1,097-to-1 demand
What's the deal? Jincostec, a South Korean hydrogel-based cosmetics manufacturer, has priced its IPO at US$19.7 per share, the top of its target range, raising roughly US$16.8M. The offering of 852,000 shares implies a market capitalisation of about US$74.6M.
Why now? Institutional demand was strong: 2,006 institutions bid during the September 16—22 book-building, driving a subscription rate of 1,097.62 to 1. Hana SecuritiesDealroom has a profile for this one. Try Dealroom → is lead underwriter, with a Kosdaq listing planned for October 15.
What's the endgame? Founded in 2010, Jincostec makes hydrogel mask packs, eye patches, and spot patches for domestic and overseas cosmetics brands on an original design manufacturer (ODM) basis. It plans to use proceeds to build a third factory near Siheung, secure raw materials, fund next-generation hydrogel research, and expand its global client base.
By the numbers: Revenue rose about 2.5 times in two years, from US$16.3M in US$1.7B to US$40.7M in 2024. Last year it posted operating profit of US$4.02M and net profit of US$5.03M; first-half revenue this year reached US$26M.
Chief executive officer Kim Im-jun said the book-building confirmed investor interest in "Jincostec's hydrogel material technology, mass-production capabilities, and growth potential" (translated from Korean). Retail subscription runs October 2 and 6, with payment due October 8.
The signal: Jincostec's move to the main Kosdaq board reflects appetite for specialist beauty manufacturers riding demand for Korean cosmetics abroad. Its plan to widen into skincare, sun care, cleansing, and hair care signals a bid to become a broader hydrogel ODM player rather than a single-product supplier.
Read more: edaily.co.kr
Image credit: Generated with Gemini
