NS Shopping goes public on Seoul bourse

NS Shopping Co., South Korea's home shopping mall that specializes in food, was listed on the Seoul bourse on Friday, the country's largest initial public offering this year.

NS Shopping opened trade at 221,500 won ($200.42), below the top of its marketed range at 235,000 won. Its shares jumped 8.75 percent in the first 20 minutes of trading in the benchmark KOSPI market.

The company is 40.17 percent owned by Harim Holdings Co., the nation's largest poultry producer, and is the fourth home shopping channel to go public on the local bourse.

"Starting with TV home shopping in 2001, NS Shopping has grown into an integrated retail company whose businesses include Internet, mobile, interactive TV shopping, catalog and global business," CEO Do Sang-chul said in a ceremony held at the Korea Exchange. "We will make efforts to fulfill the responsibility (as a listed company) for shareholders."

The IPO deal had drawn keen attention from institutions and retail investors during the demand assessment and pre-order session earlier this month, reflecting interest in new shares amid dull performance of market heavyweights and record-low interest rates.

The firm posted 390.4 billion won in sales last year, with 80 percent coming from TV channels. Operating and net profits came to 92.5 billion won and 70.8 billion won, respectively, according to its regulatory filing.

While its main customers are those in their 40s and 50s, the company launched a mobile application in November to better reach out to young shoppers with a wider range of non-food items.

Its operating profit ratio is 7.5 percent, higher than its competitors, thanks to the lower return rate of agriculture, fisheries and health food. (Yonhap)