KTB Network looks to expand via IPO
KTB Investment & Securities’ venture capital subsidiary, KTB Network, plans to proceed with its initial public offering (IPO) on the tech-heavy KOSDAQ within this year.
Since its establishment in 1981 as the first venture capital firm in Korea, KTB has managed over $3 billion in venture and growth capital funds. All eyes are now on KTB Network’s slated IPO as well as the future growth of KTB Investment.
KTB Network, the venture capital arm of KTB group, was spun off from KTB Investment back in 2008. KTB Investment holds a 100 percent stake in KTB Network. The root of the brokerage firm originated from the venture capital business. During the past 40 years, about 300 companies in KTB’s portfolio went public both in Korea and abroad, accounting for over 10 percent of all Korean IPOs.
Some of the firm’s most notable accomplishments include investments in Viva Republica which owns fintech giant Toss, as well as Woowa Brothers which operates
Korea’s largest food delivery service Baemin. The venture capital company invested in Woowa Brothers back in 2014 and 2015 in the earlier stages of the burgeoning business.
KTB Network’s total assets under management (AUM) stood at around 1.16 trillion won ($1.04 billion) at the end of last year. In terms of AUM, KTB Network ranks at around ninth place among venture capital companies in Korea, following the nation’s top player IMM Investment, as well as Korea Investment Partners, Aju IB Investment, and SoftBank Ventures.
KTB Network attempted to go public in early 2019, but plans were dropped due to unfavorable external market conditions.
“The firm is scheduled to select the IPO’s book runner and underwriters in mid-March. More specific details about the public offering’s timeline will be determined once the book runner and underwriters are decided,” an official from KTB Investment & Securities said.
The official explained that KTB Network has been preparing for the IPO for the past few years, and one of the main reasons that the venture capital arm of the investment bank decided to go public this time is that they view market conditions and its performance are now both ready for the public offering.
The venture capital firm achieved a net profit of 35.8 billion won ($32.2 million) in 2020, up 136.4 percent year-on-year. Given the price-to-earnings ratio (PER) of the firm’s peer companies, KTB Network’s corporate value for the IPO is estimated at around 705.2 billion won. As the venture capital affiliate is now a cash cow for KTB Investment & Securities, the brokerage is also expected to enjoy benefits from the IPO.