Voronoi restarts IPO process with lower valuation target Attention being paid to convertible bonds outstanding

Translated by Kim So-in 공개 2022-05-18 08:15:43

이 기사는 2022년 05월 18일 08:11 더벨 유료페이지에 표출된 기사입니다.

South Korea’s biotech startup Voronoi has restarted an initial public offering (IPO) process by lowering its valuation target, with attention being paid to convertible bonds (CBs) outstanding.

Voronoi had 25 billion won ($19 million) worth of CBs outstanding as of Monday. VTI Partners and DS Asset acquired 20 billion won and 5 billion won worth of the bonds respectively in a pre-IPO placement in August 2021.

A conversion price of the bonds will likely be adjusted even if the firm’s IPO price is set within a desired range. The conversion price was set at 53,000 won, which is lower than the desired IPO price range of between 40,000 won and 46,000 won.

Voronoi canceled its IPO plan as it drew lukewarm investor demand in its bookbuilding in March, which led the firm to lower its valuation.

Voronoi issued CBs with a refix option, which allows the conversion price to be adjusted when the IPO price is set below the conversion price. The number of shares to be converted currently accounts for 3.7% of the number of stocks to be listed, but the proportion may increase to up to 4.9% after the refixing.

The conversion option can be exercised starting from August 18, after Voronoi’s planned IPO date. Of 25 billion won CBs outstanding, 40%, or 10 billion won of the bonds are to be converted to redeemable convertible preference shares (RCPS). RCPSs are treated as liabilities in the books, posing a financial burden until they are converted into common shares.

Voronoi has recognized consideration for conversion rights of the CBs that can be converted to RCPSs as derivative liabilities.

The company’s planned IPO is expected to improve its financial structure as it aims to raise between 52 billion won and 59.8 billion won through the listing.

Voronoi is in a complete capital erosion as of the end of first quarter with an accumulated deficit of 106.3 billion won. The company recorded revenue of 1.1 billion won in the first quarter and estimated its annual revenue to be 26.1 billion won. (Reporting by A-ran Sim)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재 및 재배포 금지 >
주)더벨 주소서울특별시 중구 무교로 6 (을지로 1가) 금세기빌딩 5층대표/발행인성화용 편집인이진우 등록번호서울아00483
등록년월일2007.12.27 / 제호 : 더벨(thebell) 발행년월일2007.12.30청소년보호관리책임자김용관
문의TEL : 02-724-4100 / FAX : 02-724-4109서비스 문의 및 PC 초기화TEL : 02-724-4102기술 및 장애문의TEL : 02-724-4159

더벨의 모든 기사(콘텐트)는 저작권법의 보호를 받으며, 무단 전재 및 복사와 배포 등을 금지합니다.

copyright ⓒ thebell all rights reserved.