Seoul-based STIC Investments has divested its stake in Vieworks, a medical scanning company, through an initial public offering (IPO) on the Korean stock exchange.
The listing generated an IRR of 90 percent and a multiple of 6x on the investment for the firm.
The Korean stock market is the best performer in Asia, despite the many depressed stock markets in the region, Trevor Chan, a director at the firm, said in explaining the decision to list Vieworks. The basic fundamentals of the company are good and at the end of the day, it is hard to gauge the top or bottom of the curve, he added.
This January, STIC also sold its stake in Korean biotech company Medy-Tox through an IPO. The firm generated an IRR of 33.2 percent and returned a 2x multiple on that investment.
Established in 1999, Vieworks is a digital fluoroscopic imaging solution company based in South Korea.
STIC acquired a less than 10 percent stake in the company for an undisclosed sum 25 months earlier. The capital was used to scale up operations and step up research and development.
The investment was made from the $80 million STIC M&A Fund, which is fully invested. The fund focuses on mid market growth investments in Korea. Its investors include Korea’s Ministry of Knowledge Economy and National Pension Services.
This March, the Ministry of Knowledge Economy also backed STIC Asia Mid-market Private Equity Fund II with $20 million. The fund is targeting $500 million and “is comfortable with reaching $200 million for its first close by mid-June”, Trevor Chan, a director at the firm, said in an interview. The firm is aiming for a final
close this December, he added.
In October 2008, the firm closed STIC Secondaries Fund II on $386 million. The fund acquires private equity portfolios such as growth capital, buyouts and special situations in South Korea and the rest of Asia Pacific.