Blue M Tech, an e-commerce startup focused on medicine distribution in South Korea, has submitted a preliminary request for listing on the KOSDAQ, the country’s equivalent of NASDAQ, according to a statement from the Korea Exchange dated June 9.
The startup’s audit report reveals it posted sales of 77.1 billion won ($68.9 million) with an operating profit of 890 million won ($800,000) in the past year. The bulk of these sales—76.6 billion won ($59.4 million)—came from its main operating platform, Blue Pharm Korea, a top-tier e-commerce platform serving hospitals and clinics in the region.
Blue M Tech has encountered a net loss due to current debt, most resulting from previous Series A and B investments in redeemable convertible preferred stocks (RCPS). Under the Korea International Financial Reporting Standards (K-IFRS), these RCPS were recognized as a liability, leading to the company’s decision to follow the “Tesla Track” for its KOSDAQ listing.
Before the filing, the startup reportedly converted all RCPS into common stock, an effort made possible through active investor participation. This is seen as an attempt to stabilize trading volumes post-listing by ensuring protection measures beyond mandatory levels. The company’s transition to profitability and growth prospects underpin the belief that the IPO will offer a fair evaluation of the firm’s corporate value.
The public offering is set to include approximately 1.4 million shares, making up 13.1% of the 10.65 million shares planned for listing. Hana Securities and Kiwoom Securities are the listing arrangers for Blue M Tech’s IPO.
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