Ediya Coffee postpones IPO indefinitely
[THE INVESTOR] Ediya Coffee announced on April 12 that it has decided to put on hold its initial public offering.
The Korean coffee franchise had previously been planning to go public in the second half of this year, and selected Mirae Asset Daewoo as the manager last year.
“We came to the conclusion that for now, it is more imperative for us to create an environment that both headquarters and franchises can make a win-win situation,” Ediya Coffee CEO Moon Chag-gi said in a statement.
Ediya currently has more than 2,000 outlets here and only 10 of them are directly managed by the headquarters. The company said that it will first find some measures to settle some Ediya Coffee franchise owners’ worries about decisions being made against their interest for the profit of shareholders after the IPO.
The firm added that the IPO postponement would not affect the company’s other current business plans, including establishing a roasting factory in Pyeongtaek, Gyeonggi Province.
“Even without going public, we have enough cash flow to establish the factory,” a Ediya spokesperson told The Investor. “We finished buying the site from Inktek and currently are preparing to start construction,”
Sales of Ediya Coffee, which focuses mostly on small shops with low-cost coffee, reached 184.1 billion won (US$171.87 million) with operating profit of 20.2 billion won last year.
By Song Seung-hyun(firstname.lastname@example.org)