CNT Tech to Take First Step Toward AC Listing... Preliminary Review Application Planned for End of Next Month

CNT Tech to File Preliminary Listing Review Application on May 28
Food Tech Business Converted to Venture Studio
Focus on Accelerator Revenue

As CNT Tech is preparing to submit its preliminary listing review application at the end of next month, attention is focused on whether it can serve as a new alternative for the accelerator (AC) ecosystem, which often faces capital constraints.

According to the AC industry on April 21, CNT Tech plans to submit its preliminary listing review application to the Korea Exchange on May 28. This comes two years after the company voluntarily withdrew its previous application, citing that its performance as an AC was not properly evaluated. Founded in 2003, CNT Tech began as a food order brokerage platform service provider and expanded into the accelerator business in 2012. CEO Chun Hwasung is reportedly spearheading the preparation process for the listing.

To highlight its achievements as an AC, CNT Tech decided to convert its existing food tech business into a venture studio (an in-house startup incubation and investment unit). This decision follows the revision of the Enforcement Decree of the Act on Promotion of Venture Investment in August last year. Previously, the decree limited ACs to having subsidiaries or affiliated companies only if they were early-stage startups directly selected or incubated by the AC. However, with the removal of this clause, the scope has broadened.

CNT Tech's revenue streams consist of software platforms (food tech), accelerator operations, and other service offerings. Among them, software platforms account for approximately 31.60% of total sales. As software platform revenue is now recognized as venture studio revenue, the company expects this to further emphasize its position as an AC.

CNT Tech recorded sales of 16,477,830,000 won in 2022, 19,665,520,000 won in 2023, and 19,829,770,000 won in 2024. Its operating profit during the same period was 3,918,500,000 won in 2022, 3,720,740,000 won in 2023, and 2,888,050,000 won in 2024. The company expects that last year's figures will be further improved compared to the previous year.

CNT Tech's listing plan is drawing attention within the AC sector. This is because it could become an alternative for ACs with low equity ratios (equity capital divided by total assets). According to the Science and Technology Policy Institute (STEPI), as of June 2024, an analysis of 463 domestic ACs showed that the average capital was about 2 billion won, with approximately 34% in a state of capital impairment. Strengthening the capital base of ACs will also have a positive impact on startups in need of follow-up investment.

If the first AC listing succeeds, it is possible that other ACs will follow with initial public offerings (IPOs). IPOs have long been a major topic of interest for the AC industry, especially as some ACs have temporarily suspended their listing plans. Bluepoint Partners attempted to go public twice, in 2020 and 2023, but withdrew both times. In particular, in 2023, Bluepoint Partners passed the preliminary review but was unable to meet its intended timeline due to a direct correction request from the Financial Supervisory Service right before demand forecasting, causing the IPO to be postponed. FuturePlay also selected a lead manager for an IPO in 2021, but the process stalled. However, it is reported that FuturePlay currently has no plans for an IPO.

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