Seoul, July 16 - Haitai Confectionery & Foods, South Korea's No.4 snack maker, plans a Seoul initial public offering in 2008 to raise about 175 billion won ($190.9 million), a source familiar with the deal told Reuters on Monday.
Haitai, South Korea's oldest snack firm, which taken over by bigger rival Crown Confectionery , aims to sell 3.5 million shares, or 30 percent of its enlarged share capital, at about 50,000 won apiece, the source said, asking not to be identified.
The offer, which comprises an equal number of new and existing shares, values the entire firm at 583 billion won ($635.9 million), about 10 times Haitai's projected operating profit for 2007, the source added.
This compares to the $450 million a consortium of Crown and South Korea's Military Aid Association had paid to buy the struggling snack maker in January 2005 from UBS Capital.
The listing of Haitai, partly aimed at paying back debt, also comes as Crown's key financial investors, including the Military Aid Association, want to cash out of their investments.
Haitai has mandated Woori Investment & Securities to handle the offer, the source said.
Both Haitai and Woori declined to comment.