Jun 24, 2025
ILDONG Holdings sells shares worth KRW 30 billion with a put option for investors
Record-high sales and a return to profitability driven by export growth fuel IPO expectations
ILDONG Holdings is resuming the initial public offering (IPO) process for ILDONG Bioscience. With strong momentum from expanding exports, record-breaking sales last year, and a turnaround to profitability, attention is turning to whether the IPO will succeed this time.
On June 23, ILDONG Holdings announced the sale of 3,809,523 shares of ILDONG Bioscience to investors, including IBK-Kium Corporate Restructuring Private Equity Fund, for approximately KRW 30 billion.
As a result of this transaction, ILDONG Holdings’ ownership in ILDONG Bioscience will decrease from 70.1% to 22.5%.
This move is interpreted as a step toward reinitiating the IPO. The company explained in its disclosure, “This transaction is part of a Pre-IPO strategy, involving the sale of shares held by ILDONG Holdings to investors.”
A put option has been granted to investors in this deal. If ILDONG Bioscience fails to file a preliminary IPO application within three years from the closing date, or in the event of intentional failure to pursue the IPO or breach of agreement, investors may exercise their right to sell the shares back.
This is not ILDONG Bioscience's first attempt at an IPO. Back in September 2021, ILDONG sold 1.6 million shares (worth KRW 20 billion) under similar conditions, including a put option if the IPO failed to materialize within three years. That attempt also fell through.
Although the health functional foods market grew rapidly from 2020 amid the COVID-19 pandemic, intensified competition and an unfavorable capital market environment made it difficult to proceed at that time.
An industry source commented to Medipana News, “Back then, market conditions were unfavorable not just for the pharmaceutical industry but across sectors, causing many companies to postpone or cancel IPOs. IPOs should ideally take place under optimal conditions, and this time will also depend heavily on market circumstances.”
ILDONG Bioscience’s recent rebound in performance and strengthened growth drivers are expected to positively impact the upcoming IPO attempt.
In 2023, ILDONG Bioscience posted sales of KRW 23.8 billion and operating profit of KRW 2.2 billion. Sales increased by 33.3% from KRW 17.9 billion in the previous year, setting a new company record. The company also returned to profitability, recovering from an operating loss of KRW 1 billion in 2022.
The company, which began with KRW 2.4 billion in revenue and a KRW 200 million operating loss in 2016, grew rapidly to reach KRW 20.7 billion in sales and KRW 2.4 billion in operating profit by 2020. However, growth stalled in the aftermath of COVID-19. Sales dipped to KRW 19.9 billion with a KRW 400 million profit in 2021, and while 2022 sales recovered to KRW 20.7 billion, it slipped back into a KRW 600 million loss. In 2023, both revenue and profitability declined further to KRW 17.9 billion and a KRW 1 billion operating loss.
The key driver behind last year’s turnaround appears to be increased export volume.
After reaching a domestic sales peak of KRW 16.5 billion in 2020 from Probiotics, the company began focusing on exports. From just KRW 500 million in its first year, export sales steadily increased to KRW 6.3 billion in 2023. While domestic sales declined to KRW 10.6 billion, exports have effectively filled the gap. Additional export-related revenue also grew from KRW 500 million in 2023 to KRW 2.2 billion last year, further highlighting export expansion.
ILDONG Bioscience continues to actively pursue global market growth.
From June 9–11, the company participated in “Probiota America,” a global microbiome-focused exhibition held in Vancouver, Canada. It presented three research posters on Lacticaseibacillus rhamnosus IDCC 3201 (RH3201), Bifidobacterium lactis IDCC 4301, and heat-treated Bifidobacterium breve IDCC 4401 (BBR 4401), while also engaging in networking through its exhibition booth.
Earlier this year in February, ILDONG Bioscience participated in “Vitafoods India 2025,” following appearances at “Vitafoods Asia,” China's major health supplement expo, and “Vitafoods Europe” last year—promoting its Probiotics ingredients and functional bioactive materials to accelerate global market entry.
In a related press release, the company stated, “Based on ongoing research achievements, we plan to expand development of functional ingredients and finished products while accelerating our entry into domestic and global markets.”