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Smaller Korean cosmetics firms seek listing

Several smaller cosmetics companies are seeking to list their shares on the local stock markets backed by growing popularity of their products abroad, market watchers said Sunday.

Tonymoly Co., a budget cosmetics maker, applied for a preliminary application to list its shares on the country's main bourse last week to help make inroads into overseas markets, including China, with potential proceeds, according to market watchers.

The company, which was set up in 2006, posted a net profit of 11.6 billion won ($10.6 million) last year and sales of 205.1 billion won.

"We are targeting 400 billion won in sales this year with plans to open a unit in China with the proceeds through an initial public offering (IPO)," an official said.

Its rival Nature Republic Co. seeks to list on the local stock market with plans to apply for a preliminary application for the IPO in the second half, according to the company.

Smaller firm It's Skin is also receiving requests for a possible listing from local brokerage firms, spurred by its sharp growth in earnings, but the company said nothing has been decided yet.

South Korea's big name cosmetics brands, such as Amore Pacific Group, are enjoying high popularity in Asian markets, mainly China, with hot beauty items appearing in famous Korean dramas.

Korean low- to mid-priced cosmetics firms are also seeking to expand their presences in foreign markets based on the growth of their profits and popularity. (Yonhap)