BaroPharm, a pharmacy integration platform company, is trading more than 20% below its offering price on its first day of KOSDAQ listing on November 11.
According to the Korea Exchange, as of 9:21 a.m., BaroPharm's shares were priced at 13,090 won, down 3,310 won (20.18%) from the offering price of 16,400 won.
Founded in 2019 by current pharmacist CEO Kim Seul-ki, BaroPharm provides essential services for pharmacy operations, including an integrated drug ordering solution, payment processing, returns, opening support, and AI drug identification.
During the IPO process, investor demand was relatively low. In the institutional investor demand forecast held from October 22 to 28, the company recorded a competition ratio of 152.36 to 1, confirming the offering price at the lower end of the desired range at 16,400 won. The subscription competition ratio for general investors during the offering period from November 2 to 3 was 19.27 to 1, with approximately 70.3 billion won in subscription deposits collected. Mirae Asset Securities acted as the lead underwriter for the KOSDAQ listing.
The company has secured approximately 24,787 subscribers, representing about 90% of pharmacies nationwide. The cumulative integrated order connection amount is 7.2 trillion won, with a reorder rate of 86%. BaroPharm is expanding its reach beyond the platform business into direct purchases from pharmaceutical companies, beauty product distribution, and its own brand initiatives.
BaroPharm's performance continues to grow, with sales reaching 96.7 billion won last year, a significant increase from about 300 million won in 2021. In the first half of this year, the company recorded sales of 69 billion won and an operating profit of 2.2 billion won, marking a return to profitability.
The company plans to invest the funds raised from this offering into AI technology, international brand expansion, and the establishment of pharmaceutical production facilities. This strategy aims to broaden its business scope beyond pharmacy platforms into the overall healthcare sector.
CEO Kim Seul-ki stated, "BaroPharm has grown through a network of pharmacies where our platform, partnerships, and brand initiatives support each other. With our KOSDAQ listing, we aim to innovate the pharmacy platform and shape the future of healthcare."
* This article has been translated by AI.
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