A renowned chef, made famous by a hit Netflix show, is about to transform South Korea’s sluggish IPO market. Chef Paik Jong-won, often referred to as South Korea’s Gordon Ramsay, is preparing to launch an initial public offering (IPO) for his successful restaurant chain, potentially valuing his stake at approximately $180 million (S$237 million).
Investment bankers in South Korea are hopeful that this share sale will attract investors eager to tap into the thriving food industry. Theborn Korea, Chef Paik’s restaurant franchise founded three decades ago, is set to list this week, aiming to raise up to 84 billion won ($80 million) at the top of its marketing range, which could value the company at around 405 million won. While this may seem modest, it presents a rare opportunity to invest directly in the country’s culinary sector.
This IPO comes at a strategic time, coinciding with the rising global popularity of Korean cuisine, thanks to the K-culture wave. Anticipation is building ahead of the pricing on October 25, especially following the success of Paik’s appearance on Netflix’s Culinary Class Wars, which recently topped the streaming service’s global charts for non-English titles.
At 58 years old, Chef Paik’s profile has surged thanks to his involvement in various food shows and a massive YouTube following of 6.6 million subscribers. His channel showcases everything from easy recipes to culinary adventures around the world, helping to build a devoted fanbase.
The IPO is priced within the range of 23,000 to 28,000 won per share. Established in 1994, Chef Paik’s restaurant chain features a diverse array of affordable dining options and owns around 25 brands, including New Maul Restaurant and Paik’s Coffee, with approximately 2,900 outlets nationwide.
This listing would provide a much-needed boost to South Korea’s IPO market, which has struggled recently and is considered one of the worst-performing stock markets globally. The success of Netflix’s unscripted food series has revitalized the restaurant industry, particularly in the wake of the COVID-19 pandemic.
Online buzz surrounding the show has translated into increased reservations at the featured restaurants, and YouTube videos related to the series—such as those showcasing innovative recipes made from convenience store ingredients—have attracted millions of views.
So far in 2024, South Korean IPOs have raised $1.23 billion, surpassing the total for all of 2023 but still far from the $15.2 billion raised in 2021. Last week, the online lender K Bank canceled its IPO due to weak demand, underscoring the challenges facing the market.
As Chef Paik steps into the spotlight with his upcoming IPO, all eyes will be on the culinary landscape of South Korea, where the blend of entertainment and food is proving to be a recipe for success!
