2020.10.23

Farm8, a South Korean agricultural firm with advanced technologies in indoor farming, is seeking to go public on the main Kospi in 2022 after gaining confidence from capital investment.

Farm8’s biggest backer IMM Investment is expected to play a pivotal role in the initial public offering and likely to remain as its No. 1 shareholder to drive the company’s global expansion.

The Seoul-based alternative asset investment firm first linked up with Farm8 in 2014 by investing 16 billion won ($14.1 million) and has since been an ardent supporter of the company, backing its financing, benchmarking and promotion efforts.

In March this year, it helped pulled 10 billion in outside capital, including 5 billion won from state-run Korea Development Bank.

Farm8’s valuation is estimated at 80 billion won after its rights issue.

Farm8 posted 47.2 billion won in revenue last year, up 7.5 percent from 2018. Sales this year are estimated to jump 25 percent to 58 billion won, according to the company.

The firm has been seeing robust growth despite the coronavirus slump, gaining recognition for its eco-friendly agricultural cultivation and processing technologies. It is the country’s leading smart farm factory, incorporating the latest technologies including artificial intelligence and internet of things to optimize and automate the cultivation process.

Farm8 has installed Metro Farms in five subway stations in Seoul and is planning to build a container smart farm in South Korea’s Antarctic research station by the end of this year. It aims to triple its smart farm capacity to 9,910 square meters next year.

The firm also plans to add more value-added crops such as ginseng and strawberries and is exploring options of using these ingredients for cosmetic and medical purposes.

Korea’s smart farm market is estimated to be worth 2.6 trillion won this year, with potential to grow even further amid pledges of government support.

Farm8 is also intent on taking its business global. It said it aims to build its presence in Asian markets including Mongolia, Singapore and Japan, and eventually break into North America and Europe.

By Park Chang-young and Kim Hyo-jin