[IPO Spotlight] 'Record Performance' Alpe Bio Strengthens Competitiveness with Smart New Factory

Issuance of 1.2 Million New Shares... Plan to Raise 12 to 15.6 Billion KRW
Investment in Smart New Factory Expansion and Formulation Diversification

[Asia Economy Reporter Kwangho Lee] Alphabio, the nation's top softgel OEM·ODM specialized manufacturer, is accelerating its initial public offering (IPO).

On the 16th, Alphabio held an IPO press conference in Yeouido, announcing its future strategies and vision following its planned listing on KOSDAQ.

Alphabio's expected public offering price ranges from 10,000 to 13,000 KRW per share, with 1.2 million shares to be offered. The total expected amount is approximately 12 to 15.6 billion KRW. Since the previous day, demand forecasting has been underway targeting domestic and international institutional investors. The offering price will be finalized after the demand forecast concludes today. From the 20th to the 21st, public subscription will be conducted for general investors, and the company will debut on the KOSDAQ market on the 29th. The lead underwriter is Korea Investment & Securities.

Alphabio is a softgel manufacturer established as a joint venture between the U.S. company Alphasher (now Catalent) and Daewoong Pharmaceutical. It manufactures all pharmaceuticals and health functional foods utilizing softgel capsules.

The main formulation, softgel capsules, are produced by filling gelatin or similar capsule bases with contents such as oils that do not dissolve in water. This formulation is commonly encountered in pharmaceutical and health functional food markets. It is mainly applied in the production of pharmaceuticals like cold medicine and painkillers, as well as health functional foods such as Omega-3 and lutein. Key products include Urusa (Daewoong Pharmaceutical), Mod Series (Chong Kun Dang), and Promega Omega-3 (Chong Kun Dang Health).

Currently, Alphabio serves approximately 250 clients. These range from large pharmaceutical companies such as Chong Kun Dang, Yuhan Corporation, and Green Cross, to health functional food distributors including Korea Yakult, Chong Kun Dang Health, CJ CheilJedang, and KGC Ginseng Corporation. Products are supplied through OEM·ODM methods.

Alphabio's strengths can be summarized as ▲unique proprietary technology (36 months) ▲proactive product planning and R&D capabilities ▲product quality ▲expert group production know-how. Since its establishment, it has maintained a dominant No.1 position in the softgel OTC (over-the-counter) segment.

It boasts various technologies such as 'NeoGel,' the only domestic 36-month shelf-life assurance technology, 'NeoSol,' the shortest in-body drug response technology in Korea, and the smallest size softgel capsule production technology domestically. It is making its presence known by developing customized products tailored to diverse markets.

Sales have steadily increased. Last year, Alphabio recorded sales of 115 billion KRW and operating profit of 5.9 billion KRW. The compound annual growth rate (CAGR) for sales over the past three years (2019?2021) reached 28.8%. The company is recognized for securing qualitative growth alongside quantitative expansion. As of the first half of this year, sales reached 68 billion KRW with an operating profit of 7.6 billion KRW. Having already surpassed last year's operating profit, record-breaking performance is anticipated.

Namgi Kim, CEO of Alphabio, stated, “With the KOSDAQ listing as a milestone, we will enhance corporate value and leap from being a top player in the softgel pharmaceutical ODM industry to a leading company encompassing health functional foods. We will focus on maximizing corporate value and competitiveness through smart new factory expansion and formulation diversification, aiming to become a globally recognized softgel ODM company beyond Korea.”

With Alphabio’s IPO gaining momentum, financial investors (FIs) have found a path to recover their investments. Shareholders include Midas PE, Isu Venture Capital, and IBK Capital. Before the offering, Midas PE holds 680,000 shares (10%), Isu Venture Capital holds 120,000 shares (1.8%) through the AJ-ISU Gyeonggi Agri-Food Investment Association, and IBK Capital holds 60,000 shares (0.9%). All are expected to achieve substantial returns.

This content was produced with the assistance of AI translation services.