Investors in Theborn Korea, led by Paik Jong-won, who has been embroiled in various controversies, are reportedly experiencing average losses close to 30%.
According to Naver Pay's 'My Asset Service' on the 14th, the average purchase price for 5,846 investors in Theborn Korea was recorded at 37,513 won. Based on the previous day's closing price of 27,100 won, the average loss rate is indicated to be 27.76%.
As the stock price has fallen to the mid-20,000 won range, investors are interpreted as having engaged in what is known as 'averaging down,' a strategy to lower the average purchase price through additional buying.
Individual investors purchased 45.9 billion won worth of shares during November of last year, the first month after Theborn Korea's listing. Since then, they have shown a buying advantage every month up to this month. In particular, in February this year, they purchased as much as 23.4 billion won.
However, the stock price of Theborn Korea continues to decline daily. Various allegations have emerged, including insufficient pork content in its processed food brand, Bbaekham, false advertising regarding the origin of products from some brands like Bbaekdabang, insufficient citrus beer content, and violations of agricultural land laws. In particular, it has not exceeded the 30,000 won mark even once since March 28.
In the securities industry, it has been pointed out that individual investors in Theborn Korea have suffered significant investment losses due to the listing underwriter's reckless promotion and excessively inflated corporate value. The owner risk, which was previously a concern before the listing, has materialized, and forecasts have emerged that the business will continue to decline overall.
Independent research firm Research Alum released a report titled 'Only the listing underwriter benefited, and individual investors left behind Theborn Korea's initial public offering (IPO)' the previous day and presented a negative outlook for the stock price. The appropriate stock price was suggested to be 19,000 won, a 29.89% decrease compared to the previous day's closing price of 27,100 won.
Choi Seong-hwan, the representative of Research Alum, noted, 'Despite the structural limitations of the franchise industry and the repeated delisting cases of existing franchised companies before the listing, an overvalued listing relying too heavily on the personal brand value of Paik Jong-won took place.' He added, 'Shareholders have also suffered significant investment losses due to the flawed listing process and inflated corporate value, making it a serious issue that cannot be taken lightly.'