Hanwha Asset Management sold 193,075 shares of Lemon Healthcare on the company's listing day May 6, recovering approximately 3.1 billion won at 16,298 won per share. The asset manager's remaining 11.28% stake in Lemon Healthcare is now valued at approximately 8.7 billion won as of May 24, representing a 38% decline from the original 17 billion won investment across two funding rounds. The delayed exit timeline stems from Lemon Healthcare's stock price falling to 5,790 won, nearly half its 10,000 won IPO price. Lock-up periods on additional shares will expire in phases starting next month. Industry observers expect Hanwha Asset Management to hold its remaining position long-term given current market conditions.
Hanwha Asset Management Invested 17 Billion Won Across Two Funding Rounds
Hanwha Asset Management acquired redeemable convertible preference shares (RCPS) in Lemon Healthcare through two separate investments. In May 2022, the firm participated in Lemon Healthcare's Series C funding round through Hanwha Smart Healthcare New Technology Fund No. 1, investing 10 billion won. The fund was formed with participation from Hanwha Investment & Securities.
In 2021, Hanwha Asset Management invested 7 billion won through Hantoo Hanwha Digital Healthcare Private Equity Fund No. 1, a consortium established with Hantoo PE. The combined 17 billion won investment made Hanwha Asset Management the largest financial investor in Lemon Healthcare by shareholding percentage.
The 193,075 shares sold on listing day represented 1.45% of Lemon Healthcare's total issued shares. Following this sale, Hanwha Asset Management retained an 11.28% stake in the company.
Lemon Healthcare Stock Price Falls to 5,790 Won
Lemon Healthcare closed at 9,500 won on its listing day, 5% below the IPO price of 10,000 won. As of May 24, the stock traded at 5,790 won.
At the May 24 closing price, Hanwha Asset Management's remaining stake is valued at approximately 8.7 billion won. This represents 62.58% of the 13.9 billion won calculated stake value based on the original investment principal minus the shares sold on listing day. The current valuation stands at approximately half of the original 17 billion won investment amount.
Lock-up Releases Scheduled for 679,958 Shares
A total of 679,958 shares (5.09% of total shares) will be released from mandatory holding periods in early next month. An identical quantity of shares will be freed from three-month selling restrictions in September.
According to Financial Supervisory Service disclosures dated May 24, Hanwha Asset Management sold all unrestricted tradable shares on the listing day at 16,298 won per share.
FAQ
What was Hanwha Asset Management's total investment in Lemon Healthcare?
Hanwha Asset Management invested a total of 17 billion won in Lemon Healthcare across two funding rounds: 10 billion won in May 2022 through Series C funding and 7 billion won in 2021 through a private equity consortium.
How much did Lemon Healthcare stock price fall after its IPO?
Lemon Healthcare closed at 9,500 won on its May 6 listing day, 5% below the 10,000 won IPO price. As of May 24, the stock traded at 5,790 won, representing a decline to nearly half the IPO price.
When will Hanwha Asset Management's lock-up periods expire?
A total of 679,958 shares (5.09% of total shares) will be released from mandatory holding periods in early next month. An identical quantity will be freed from three-month selling restrictions in September.
