Ajin P&P Delays Initial Public Offering Amid Widening Operating Losses
Corrugated paper manufacturer Ajin P&P has delayed its initial public offering for four years as pandemic-era demand faded and operating losses widened to 5.7 billion won last year, according to a report by Seoul Economic Daily (sentv.co.kr). The company initially began preparations to go public in 2021 after seeing profits climb during the COVID-19 pandemic.
Financial Setbacks Derail Corporate Goals
Ajin P&P reported a consolidated revenue of 265.7 billion won last year, representing a 5.6 percent increase from the previous year. However, selling and administrative expenses surged by 71 percent to 35.7 billion won. That sharp rise pushed the company’s operating loss from 3 billion won up to 5.7 billion won, marking two years of red figures following deficits that began in 2024.
The financial downturn forced the manufacturer to miss internal milestones set for its 50th anniversary last year. The company had targeted 500 billion won in revenue and 50 billion won in operating income, but actual revenue reached roughly half that projection while operating profit failed to turn a profit.
Industry Headwinds and Management Plans
Domestic production of corrugated paper base stock dropped nearly 8 percent last year to approximately 5.16 million tons, dampening sector-wide market prospects. In response to the softening conditions, Ajin P&P implemented base stock price increases late last year.
Industry observers note that price adjustments alone have limited capacity to resolve fundamental profitability issues while demand remains weak. Analysts indicate that reviving the long-delayed public offering will require establishing a reliable earnings capability before moving forward.
Management previously pursued the listing to secure steady capital funding and establish managerial autonomy. Past financial difficulties subjected the firm to creditor joint management between 2005 and 2011, and the Korea Development Bank maintained influence until it retrieved its investment funds in 2019. Representatives for Ajin P&P declined to provide detailed comments regarding the current status of the offering, Seoul Economic Daily reported (sentv.co.kr).
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