South Korean cosmetics packaging molder Yonwoo Co. Ltd. raised $53.4 million in an initial public offering Nov. 2 to expand its research capabilities and enter the pharmaceutical packaging and household goods markets.
Yonwoo, based in Incheon, has sizable injection molding capability in Korea, and said it's grown rapidly focusing on airless pumps and other cosmetics packaging, with sales to 40 of the 100 biggest cosmetics makers.
It had 2014 sales of 168.7 billion Korean won ($148.7 million) and profit of 8.6 billion won ($7.64 million).
“The capital injection will allow Yonwoo to strengthen its financial structure and advance its research and development,” the company said in a statement. “The latter will place an emphasis on cosmetic dispenser technology and next-generation convergence, especially beauty products integrating IT functionality.”
“In addition, it aims to move beyond the cosmetic industry, into the pharmaceutical and household goods markets, where it sees a real use for its products,” it said.
Yonwoo did not detail how it plans to spend the money, but in a 2013 interview with Plastics News , company executives said Yonwoo spends at least 8 percent of sales each year on research and development, a large figure for a mid-sized company.
At the time the firm said it had 65 of its own injection molding machines and 240 more at subcontractors in South Korea who are 100 percent dedicated to Yonwoo business, including some who put their operations directly inside Yonwoo factories.
“This listing will help us enter the next phase of growth,” said Yonwoo Europe Managing Director Laurent Frydlender, in a statement. “Yonwoo has been leading the field in cosmetic packaging since 1983, setting the industry standard in airless technology and packaging innovation.”
In the 2013 interview, Yonwoo said it was considering setting up its first production outside Korea in response to pressure from customers, and was looking at either China or Brazil. It said that in 2002, it had sales of about $20 million.
In the IPO, the company said it sold 2.4 million shares at $22.20 a share. The company is listed on South Korea's KOSDAQ Exchange, a part of the Seoul-based KRX Exchange targeting small and medium-sized companies.
Yonwoo has 1,241 employees.