FSN Considering IPO, Divestment, and Merger Options for Boosters

FSN announced that it is considering various options for its subsidiary Boosters, including an initial public offering (IPO), divestment followed by listing, or a merger by absorption.

According to FSN on August 31, the company plans to finalize the direction and begin implementation within the second half of the year after communicating with major shareholders and stakeholders. This review stems from the view that FSN’s market value does not adequately reflect the steep growth and increased corporate value of Boosters. Through this restructuring, FSN aims to establish a virtuous cycle in which Boosters’ growth and intrinsic value are successfully translated into FSN’s corporate value.

Boosters recorded consolidated sales of 105.1 billion won and operating profit of 14.7 billion won in 2024, and achieved 199.3 billion won in sales and 33.4 billion won in operating profit last year. The company continued its growth this year as well, posting sales of 105.3 billion won and operating profit of 17.8 billion won in the first half alone. Notably, in the second quarter of this year, it reached its highest-ever quarterly results, with sales of 61.1 billion won, operating profit of 13.1 billion won, and an operating margin of 21.5%. Boosters also completed fundraisings totaling 37.4 billion won in the first half, being recognized with a corporate value of 200 billion won.

Despite these strong performances, FSN explained that its share price has not adequately reflected these results. FSN attributes this to several factors: a decline in valuation across both the KOSDAQ market and listed advertising companies overall (with the average market capitalization-to-net asset ratio for major advertising companies at about 0.5 times), financial burden due to one-off losses from past acquisitions, structural limitations on shareholder return capacity, and constraints on net profit attributable to controlling shareholders arising from a profit structure centered on subsidiary performance. The company particularly noted that, even though Boosters accounts for approximately 73% of FSN's consolidated sales and over 100% of operating profit, establishing itself as the group’s main growth driver, the market still categorizes FSN as a traditional advertising company and applies a low valuation, reflecting the sector as a whole.

An FSN official stated, "Since these three options differ significantly in terms of regulatory risk mitigation, required funding size, and impact on existing shareholders, it is difficult to say definitively that any one option is clearly superior. Regardless of which option we choose, our single goal is to create a structure in which the fruits of the growth we have achieved thus far are translated into shareholder value."

This content was produced with the assistance of AI translation services.