Bonne Co.`s CEO Sean K LIM.
South Korea’s small cosmetics maker Bonne Co. is prepping to move on to the country`s secondary Kosdaq bourse from the smaller and venture-focused Konex market after merging with a special purpose company.
According to an initial public offering plan Bonne announced on Monday, the company will merge with a special purpose vehicle (SPC) in a swap ratio of 1:6.969 and list the merged entity on the Kosdaq market on Oct. 26. The board meeting will be held on Sept. 12 to decide whether to approve the merger for its move to the bigger bourse.
The company was listed on the Konex, Korea’s smallest bourse that is open to fledgling start-ups with at least 1 billion won ($897,183) of capital, two years ago. To be listed on the Kosdaq, a company should have been operating for more than 10 years with at least 3 billion won in assets.
Bonne, founded in 2009, develops and manufactures cosmetics and personal care products for global brands as well as for its own brands. It supplies hydrogel face masks for U.S. cosmetics brand Kiehl’s, BB creams to Asia’s largest multi-beauty and personal care store brand Watsons and makeup fixers to France-based personal and beauty care store chain Sephora.
With its relocation to the Kosdaq from the Konex, the company aims to expand its own brand business and add more distribution channels, Bonne said.
Its operating profit in 2017 almost doubled to 4.1 billion won ($3.7 million) from the previous year on sales of 23.6 billion won, up 43 percent over the same period. For the first six months of this year, it earned 9.8 billion won in sales, of which 41 percent came from selling its private brand products.
With products selling at 4,000 stores in 27 countries, Bonne raked in about 80 percent of its first-half sales from exports. Deliveries to North America accounted for 36 percent of total outbound shipments, exports to Asia (except for China) 19 percent, as well as Europe and others 25 percent, according to the company.
By Kang Da-young and Lee Ha-yeon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]