IT Chem (CEO Kim In-gyu) , a cutting-edge precision chemical materials company, announced on the 19th that it will issue 40 billion won worth of unsecured, bearer-type convertible bonds.
This convertible bond offering was fully sold out early, with demand far exceeding the issuance volume. IT Chem plans to invest the KRW 40 billion secured in the construction of a next-generation pharmaceutical plant.
The newly established GMP, Ministry of Food and Drug Safety-certified building will be dedicated to the production of oral low-molecular-weight peptide therapeutics, which are in growing demand for obesity and diabetes treatments, as well as high-value-added raw pharmaceutical ingredients. Given the nature of the materials industry, where factories are typically constructed after orders are finalized, the company anticipates significant sales growth following the completion of the facility.
In this issuance, existing shareholder Timefolio Asset Management invested KRW 25 billion as an anchor investor, Life Asset Management contributed KRW 5 billion, and HY24, a French-based hydrogen infrastructure fund management company, contributed KRW 10 billion as a strategic investor.
Regarding the investor structure, the company explained that this was the result of the capital market's recognition of its technological competitiveness and mid- to long-term growth potential in the fields of precision chemicals and pharmaceutical materials.
Timefolio Asset Management is a hedge fund manager with over 8 trillion won in assets under management and extensive experience in mezzanine investments in listed companies. Life Asset Management is known for its value investment strategy.
Strategic investor HY24 is a clean hydrogen infrastructure fund manager headquartered in France. The investment decision was reportedly made after approximately three years of review of ITChem's technology and business viability, marking HY24's first investment in Korea. The company anticipates this investment will serve as a starting point for collaboration on heavy water and hydrogen infrastructure projects.
These convertible bonds were issued with a 0% coupon and a guaranteed yield to maturity of 1% compounded annually. The issuing company also secured a call option that allows for an early purchase of 30% of the acquisition price after 12 months. The company explained that this structure was designed to reflect its business competitiveness and growth potential.
CEO Kim In-gyu stated that this convertible bond issuance goes beyond simple financing and aims to secure core production assets for future growth. He added that the company will strengthen its global competitiveness in the organic chemical materials sector by leveraging its GMP infrastructure and synthetic technology.
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