This article appeared on the ChosunBiz MoneyMove (MM) site at 10:37 a.m. on Jan. 11, 2026.
Shares of L&C BIO surged in a short period, leaving private equity investor NAU IB Capital with a strained expression. Because the investment was made mainly through convertible bonds (CBs), it can only start realizing gains in earnest in about three months, but if the current share price level holds, it is expected to achieve profits roughly equivalent to the current market capitalization (around 130 billion won).
On the 11th, the Korea Exchange (KRX) reported that L&C BIO shares closed at 62,300 won on the 9th. The current share price is three times the level when NAU IB Capital invested last April. The stock jumped in nine months on expectations of high growth for the skin booster Elavie Rituo and normalization of the China subsidiary.
At the time, NAU IB Capital invested 76.3 billion won in L&C BIO through NAU IB Fund No. 19. The fund was contributed to by NAU IB Capital and Soulbrain Holdings at 1.25% and 98.75%, respectively. The investment at the time included ▲100 billion won in a common stock rights offering ▲63 billion won in acquisition of existing shares from current shareholders ▲600 billion won in private convertible bonds (CBs).
L&C BIO, which owns MegaDerm, the country's No. 1 human tissue skin graft product, entered the aesthetic market with the launch of the next-generation skin booster Elavie Rituo. At the time of fundraising, it was reported that many private equity fund managers, in addition to NAU IB Capital, reviewed investing.
From NAU IB Capital's perspective, the heady rise in L&C BIO's share price is not entirely comfortable. There is still about a three-month period before the CBs can be converted into stock. The possibility that the stock price could fall again within three months cannot be ruled out.
The conversion price for the third series of convertible bonds held by NAU IB Capital is 21,200 won. The ratio to total shares outstanding is 11.09%. The conversion exercise period begins on April 23. If L&C BIO's share price falls, the conversion price would be reduced to as low as 16,960 won.
As a financial investor (FI), NAU IB Capital will have to realize gains at some point. Because the current share price level already yields substantial profit, it is likely to sell once the conversion exercise period arrives. Given the sizable CB volume, concerns about an overhang (large potential sell-off) could inevitably have a negative impact on the stock price in the short term.
Through CB conversion, NAU IB Capital could hold a total of 2,830,188 shares of L&C BIO. Selling at the current price level of 60,000 won would yield an estimated gain of 100 billion won. Assuming existing shares and, similarly, the new shares that can be sold in April are sold at the same price in the 60,000 won range, the profit is estimated at 130 billion to 140 billion won. That would raise as much as the current market capitalization from a single investment.
NAU IB Capital's net income for 2024 was 8 billion won. Because it could earn an amount more than 16 times that in one go, it is hoping L&C BIO's share price holds up.
The securities industry is forecasting positive results for L&C BIO. Fourth-quarter revenue is expected to be 25.7 billion won, up 33.71% year over year, and operating profit is expected to return to the black at 4 billion won. The only target price presented is 68,000 won by Eugene Investment & Securities.
Researcher Lee Chae-eun of Eugene Investment & Securities said, "Companywide profitability is improving due to the high-margin product mix effect of Rituo," and noted, "Overseas sales of Rituo and MegaCarty and China sales of MegaDerm Plus will start to occur in earnest from this year."