New Kids On (CEO Joo Chun-seop), an e-commerce-specialized children's fashion company, is pushing ahead with a KOSDAQ listing through a merger with KB No. 28 SPAC.
New Kids On received preliminary listing review approval from the Korea Exchange (KRX) on March 20, and submitted a securities report to the Financial Services Commission on the 28th of the same month.
The merger price per share of New Kids On and KB No. 28 SPAC is 19,150 won and 2,000 won, respectively, and the merger ratio between the two companies is 1 to 0.1832341. The total number of shares issued after the merger is 7,997,049. The shareholders' meeting for merger approval will be held on May 22, the merger date is June 24, and the listing date is scheduled for July.
New Kids On CEO Joo Chun-seop said, “Despite the declining birth rate, spending per child is increasing, and with the trend of balancing work and childcare, consumption for children is shifting to e-commerce, which is steadily increasing our business opportunities.” He added, “We will continue to grow based on high-quality products that feature design, safety, and functionality at reasonable prices, and leap forward as a global children’s fashion company.”
Established in 2013, New Kids On is an e-commerce company specializing in infant and children's products with differentiated designs and reasonable prices. It owns a total of 10 infant and children's fashion brands, including JELISPOON, milkmile, and mollimelli, and in 2021, it launched ORGABON, an organic skincare brand for infants and toddlers, expanding its business area to cosmetics.
New Kids On has been increasing its market awareness by continuously releasing products in collaboration with global character IPs (intellectual property) such as Carebears, Disney, Esther bunny, LINE FRIENDS, and Sanrio. It has entered major e-commerce platforms such as Coupang, Kakao, and Musinsa to maximize customer contact, and is also selling its products through Naver Brand Store and its own brand integrated mall, Newkiki.
New Kids On's 2024 performance was 50.4 billion won in sales, 4.5 billion won in operating profit, and 2.2 billion won in net profit, which were significant increases of 10%, 73%, and 57%, respectively, compared to the same period last year.
New Kids On plans to use the 11.5 billion won in funds that will be raised through this merger and listing to secure new growth engines, including ▲building a new logistics center, ▲converting its own mall Newkiki to an overseas platform and strengthening overseas marketing, and ▲launching a new brand of baby products.
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