이 기사는 2022년 05월 18일 08:11 thebell 에 표출된 기사입니다.

South Korea’s biotech startup Voronoi has restarted an initial public offering (IPO) process by lowering its valuation target, with attention being paid to convertible bonds (CBs) outstanding.

Voronoi had 25 billion won ($19 million) worth of CBs outstanding as of Monday. VTI Partners and DS Asset acquired 20 billion won and 5 billion won worth of the bonds respectively in a pre-IPO placement in August 2021.

A conversion price of the bonds will likely be adjusted even if the firm’s IPO price is set within a desired range. The conversion price was set at 53,000 won, which is lower than the desired IPO price range of between 40,000 won and 46,000 won.

Voronoi canceled its IPO plan as it drew lukewarm investor demand in its bookbuilding in March, which led the firm to lower its valuation.

Voronoi issued CBs with a refix option, which allows the conversion price to be adjusted when the IPO price is set below the conversion price. The number of shares to be converted currently accounts for 3.7% of the number of stocks to be listed, but the proportion may increase to up to 4.9% after the refixing.

The conversion option can be exercised starting from August 18, after Voronoi’s planned IPO date. Of 25 billion won CBs outstanding, 40%, or 10 billion won of the bonds are to be converted to redeemable convertible preference shares (RCPS). RCPSs are treated as liabilities in the books, posing a financial burden until they are converted into common shares.

Voronoi has recognized consideration for conversion rights of the CBs that can be converted to RCPSs as derivative liabilities.

The company’s planned IPO is expected to improve its financial structure as it aims to raise between 52 billion won and 59.8 billion won through the listing.

Voronoi is in a complete capital erosion as of the end of first quarter with an accumulated deficit of 106.3 billion won. The company recorded revenue of 1.1 billion won in the first quarter and estimated its annual revenue to be 26.1 billion won. (Reporting by A-ran Sim)