April Bio raises ₩346.8B ($252M) in post-IPO equity, ceding control to IMM and TKG Huchems
What's the deal? South Korean biotech April Bio is raising 346.8 billion won ($252 million) through a third-party share issuance, handing its top shareholder spot to IMM Asset Management and TKG Huchems.
Its board approved the post-IPO equity raise in June 2026, splitting it across three transactions.
The package: 141.8 billion won in common stock and 50 billion won in non-voting preferred shares to IMM, plus 155 billion won in voting preferred shares to TKG Huchems and IMM Startup Venture Fund No. 2.
Why now? April Bio says it needs operating funds, including research and development costs.
IMM plans to set up a new institution-only private equity fund in July 2026, then invest through a special purpose company to acquire the new shares. The payment date falls on July 23, 2026.
What could go wrong? The deal shifts control away from founder and chief executive officer Cha Sang-hoon, who currently holds 18.96% of the company.
Including related parties, his side controls 19.45% — a stake worth 180.3 billion won at the day's closing price. New shares price at 34,620 won per common share, below where IMM's preferred shares were set, signalling dilution for existing holders.
The signal: April Bio, a breakout-stage developer of long-acting biologics for autoimmune and oncology indications, is the latest cash-hungry drug maker to trade control for capital — a sign that private equity is wading deeper into Korean biotech with controlling rather than passive stakes. For developers facing costly R&D pipelines, ceding the top shareholder spot to well-funded backers is becoming a viable funding route.
Read more: The Seoul Economic Daily
Image credit: Generated with Gemini
