Dongbang Medical (CEO Geun-sik Kim), a company specializing in oriental medicine and cosmetic medical devices, will resume demand forecasting for institutional investors on the 16th for listing on the KOSDAQ market.
A Dongbang Medical official explained, “Last November, we decided to withdraw our IPO as we judged that we would not be able to meet the expectations of the public offering shareholders due to the continued slump in the stock market.” He continued, “Although there is still uncertainty in the market, 2025 is an important time for the company to grow to the next level, so we have decided to push for listing again with confidence based on Dongbang Medical’s unrivaled technological prowess and the performance we have achieved in domestic and overseas markets.”
Dongbang Medical resubmitted its securities report on December 6, and the report became effective on the 31st. The company will conduct a demand forecast for institutional investors for five business days from January 16th to 22nd to finalize the final offering price and conduct general subscription on February 3rd and 4th. On February 3rd, we will also conduct a subscription for our employee stock ownership association for 180,000 shares, which is 6% of the total number of shares offered, and we plan to list on the KOSDAQ market in the same month.
The total number of shares offered has decreased by about 410,000 from 3,401,029 shares to 3 million shares, and the desired offering price per share remains the same as before at 9,000 to 15,000 won. Approximately 31.5 billion won (based on the upper limit of the offering price) will be raised through this offering. Dongbang Medical recently signed large-scale supply contracts with Brazilian filler producer PHD and Russian R-PHARM, and is expecting that the production volume of aesthetic medical devices, including fillers, will increase in the future. Accordingly, the investment ratio for production facilities and equipment in the offering fund use plan has been increased to 4.7 billion won.
Dongbang Medical started out as a traditional Korean medical device business, such as acupuncture needles and cups, and recently expanded its business to include fillers, absorbable sutures, and various special needles, among other cosmetic medical devices. In particular, it is receiving favorable reviews in the market for its own technologies, such as the 'PNET' cross-linking technology that minimizes the deformation of hyaluronic acid, the main raw material of HA fillers, absorbable suture manufacturing technology, and needle tip manufacturing technology that combines long-standing know-how in the traditional Korean medical device industry.
The company's cumulative sales up to the third quarter of last year were approximately KRW 77 billion and operating profit KRW 12.1 billion, based on separate standards. Of this, sales from the aesthetic medical device sector accounted for KRW 45.6 billion, or 59%. While the aesthetic medical device sector has shown a significant growth rate of 42.3% over the past three years, the company is accelerating the establishment of new overseas corporations and expansion into global markets, starting with local corporations in China and Indonesia.
Kim Geun-sik, CEO of Dongbang Medical, said, “Dongbang Medical has consistently achieved performance growth that exceeded that of the previous fiscal year, and based on this, we plan to fully advance into the U.S. and Brazil, the world’s first and second largest cosmetic surgery markets, this year.” He added, “Based on the stable performance of our oriental medical device division, we will expand the sales proportion of our cosmetic medical devices division to 81% by 2028 and leap forward as a global aesthetic medical company.”
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