Zaigle hopes to use IPO as springboard for overseas expansion

[THE INVESTOR] South Korea's electric roaster-maker Zaigle will use funds raised from its initial public offering scheduled for Sept. 6 to expand into new markets, the company’s CEO said Aug. 17.

Speaking at a press conference, Zaigle CEO Lee Jin-hee said that the company is hoping for a “second jump” following the IPO.

At the IPO, 5.6 million shares are to be sold, and the company is hoping to raise between 112 billion won (US$101 million) and 128.8 billion won. The company said that the funds raised will be used for product research and development and facility investments. 

“(The company) has a low (debt-to-equity) ratio, and has sufficient liquidity, so raising capital is not the aim of being listed,” Lee said, saying that being listed will strengthen the company’s foundations, and allow it to enter new overseas markets.

Since 2011, the company’s annual sales and operating profits have grown on average 161 percent and 50 percent, respectively, each year. For the first quarter of the year, the company posted sales of 34.5 billion won and operating profit of 7.188 billion won.

By Choi He-suk (cheesuk@heraldcorp.com)