Celebrity chef Paik Jong-won poised for US$180 million windfall on IPO

A chef made famous by a hit Netflix show is poised to boost South Korea’s struggling initial public offering (IPO) market, listing his restaurant chain in a deal that may value his stake at about US$180 million.

Investment bankers in the nation are hoping the share sale this week by a restaurant franchise chain founded three decades ago by chef Paik Jong-won will lure investors looking for exposure to South Korea’s food industry.

At the top of the marketing range, the IPO could raise up to 84 billion won (S$80 million) and value the company, Theborn Korea, as much as 405 billion won. While it is a modest deal, it offers a rare chance to bet directly on the country’s culinary sector.

Dubbed South Korea’s Gordon Ramsay, Paik recently featured in Netflix’s Culinary Class Wars show that topped the streaming company’s global weekly TV chart for non-English titles.

The IPO also comes at an opportune time, just as Korean food is gaining popularity overseas due to the K-culture wave. That has helped create some buzz for the IPO ahead of its pricing on Friday (Oct 25).

The 58-year-old chef’s profile has grown over time due to his increasing presence in various TV food shows. Paik has also built up a subscriber fanbase of 6.6 million for his Youtube channel that features food-related videos, from simple recipes that can be recreated at home, to travelling overseas in search of local cuisines.

The IPO is being offered in a marketing range of 23,000 won to 28,000 won per share range.

Founded in 1994, the chain of restaurants offers affordable menus and casual dining experiences. The company owns some 25 brands including New Maul Restaurant, Hong Kong Banjum and Paik’s Coffee, operating around 2,900 outlets.

That would be a good outcome for South Korea’s IPO market that has been in doldrums and a stock market that is one of the world’s worst performers. 

The success of Netflix’s unscripted food series has injected life into South Korea’s restaurant industry, bringing it out of the morass following the Covid pandemic lockdowns. The show created online buzz, prompting memes and colourful characters of the chefs from the culinary battles, drawing large number of diners to restaurants operated by chefs that featured in the show. 

The reservations at restaurants run by chefs who participated in the series have spiked, while YouTube videos related to the programmes – tiramisu made from convenience store ingredients, for instance – have garnered millions of collective views.

IPOs in the nation have raised US$1.23 billion this year, more than in all of 2023 but a far cry from the US$15.2 billion in 2021. Last week, online lender K Bank pulled its offering due to tepid demand, in what would have been South Korea’s biggest listings since January 2022. 

Theborn Korea IPO is being managed Korea Investment & Securities Co and NH Investment & Securities Co. BLOOMBERG