이 기사는 2021년 05월 18일 07:47 thebell 에 표출된 기사입니다.

Logen Logistics owned by Baring Private Equity Asia (BPEA) is preparing for an initial public offering again as the private equity firm struggles to exit its position in the South Korean parcel delivery company.

BPEA has hired brokerage firm Mirae Asset Securities to list shares of Logen Logistics on the local stock exchange, industry sources said. This is the third attempt to go public after the logistics firm’s acquisition by BPEA eight years ago.

Logen Logistics’ IPO preparations come several months after the collapse of the deal between BPEA and Well to Sea Investment. BPEA had entered into advanced discussions with the investment firm last summer to sell the company, but the deal ultimately fell through.

Industry watchers expect BPEA to sell 30% to 40% of its 100% stake in Logen Logistics through the planned IPO. This is an exit strategy similar to those adopted by VIG Partners and MBK Partners for Samyang Optics and ING Life Insurance (now renamed Orange Life Insurance), respectively.

Both VIG Partners and MBK Partners unloaded roughly 40% of their holdings in the two companies through the IPOs and then sold their controlling stakes to LK-A2 Partners and Shinhan Financial Group, respectively, after the lock-up period expired.

BPEA will likely continue to search for a buyer for Logen Logistics while preparing for the IPO. The private equity firm, which bought the company for 158 billion won ($139.4 million) in 2013, has been struggling to make a full exit from the company for the past few years.

However, BPEA does not seem to be in a hurry because the investment is generating a return on invested capital. After the deal with Well to Sea collapsed last year, BPEA completed a 190 billion won recapitalization of Logen Logistics. About 70 billion won was used to repay all outstanding debt, with the rest used to pay out dividends. Woori Bank and Mirae Asset Securities jointly arranged the recapitalization.

Logen Logistics is one of the country’s five largest parcel delivery firms. Its revenue has grown at an annual rate of 10% to 20% over the past five years, from 302 billion won in 2016 to 513 billion won in 2020.

Logen Logistics’ net loss reduced from 27 billion won in 2016 to 6.3 billion won in 2017, and the company swung to a profit of 15 billion won in 2019. It recorded 18.5 billion won in net profit last year.

Rising demand for parcel delivery, accelerated by the Covid-19 pandemic, is helping boost valuations of logistics firms. Shares of CJ Logistics, which holds the largest market share of around 50%, currently trade at a price-to-equity ratio of 31 times with a market capitalization of nearly 4 trillion won.

Logen Logistics may not be valued at such a high price in the IPO because its 7% market share is much smaller than that of CJ Logistics. But the current market conditions are favorable for logistics firms looking to go public, industry watchers said. (Reporting by Si-eun Park)