With KB Securities serving as the lead underwriter, LEMON COMPANY LIMITED plans to conduct bookbuilding and the public offering this month and complete its KOSDAQ listing next month. E-Daily’s pharmaceutical and biotech premium content service, Pharm E-Daily, examined three key points from LEMON COMPANY LIMITED’s securities registration statement.
Competing with “Ddokdak” and
“GoodDoc”
LEMON COMPANY LIMITED has finalized its offering price at 10,000 won, the upper end of its target price range of 7,500–10,000 won. Applying the offering price to the total number of shares—including both the new shares to be issued and existing shares—results in an estimated market capitalization of approximately 132.9 billion won at the time of listing. The company expects to raise 20 billion won through the public offering.
LEMON COMPANY LIMITED has specified the use of the IPO proceeds as follows, based on the lower end of the price range: 3.2 billion won for capital expenditures, 9.7 billion won for working capital, and 1.8 billion won for debt repayment. Specifically, the capital expenditures will be used to build data processing infrastructure for medical artificial intelligence (AI) training, enhance LDB-based services, and expand cloud infrastructure.
LDB stands for “LEMON DIGITAL BRIDGE,” referring to the real-time, bidirectional medical MyData relay platform technology developed by Lemon Healthcare.
Lemon Healthcare offers the following services: △ the LDB-H (Lemon Care, Lemon Care Plus, Lemon TalkTalk) smart hospital platform; △ the LDB-E (Claim God, Real-Cost 24, Lemon Farm Link) medical data ecosystem intermediary platform; and △ the LDB-D (Health God) mobile healthcare personalized health data intermediary platform.
The company already posted revenue of 15.9 billion won and an operating loss of 600 million won last year. LDB-E accounts for the largest share of revenue.
This does not mean Lemon Healthcare has no competitors. Lemon TokTok competes with Vibros’ “Ddokdak” and GoodDoc’s “GoodDoc.” All three provide app-based hospital and clinic search services, medical appointment booking, and kiosk-based hospital arrival services. Claim God competes with JiANet’s “Quick Medical Expense Insurance Claim,” both of which offer kiosk- and mobile app-based medical expense insurance claim services.
In addition, Kakao Healthcare operates a mobile-based hospital referral service for patients, and Naver is also pursuing the development of medical solutions based on AI and cloud technology.
LEMON COMPANY LIMITED acknowledges the possibility of future competition with these companies in the areas of smart hospital platforms, medical data brokerage, and AI-based healthcare services; however, it emphasized its competitive edge based on its long-term operational experience.
Expansion into Over 130 Major Hospitals; Operating Profit Expected in 2026
LEMON COMPANY LIMITED expects to achieve an operating profit in 2026, the year of its IPO. The company has projected revenue of 24.1 billion won and operating profit of 6.5 billion won for this year. As of the first quarter of this year, it has recorded revenue of 2.5 billion won. The company noted that, due to the nature of the industry, revenue tends to be concentrated in the fourth quarter. Furthermore, it plans to expand its performance to 29.6 billion won in revenue and 11.3 billion won in operating profit by 2027.
The company has received high ratings in technology assessments. LEMON COMPANY LIMITED was awarded an “A” rating from both NICE Rating Information and Korea Evaluation Data.
These ratings appear to reflect the fact that the company is, in fact, a “profitable enterprise.” The evaluation agencies positively assessed that Lemon Healthcare’s LDB platform has resolved interoperability issues between closed and complex hospital medical information systems (EMR, OCS, HIS, PACS, etc.), achieving organic integration. This, in turn, enables the customized provision of medical MyData among hospitals, patients, insurance companies, pharmacies, and pharmaceutical companies.
In particular, they highly praised the fact that this technology has moved beyond the prototype stage and has been fully commercialized in real-world environments, operating stably in more than 130 major hospitals. LEMON COMPANY LIMITED’s services are currently in use at Seoul National University Hospital, Severance Hospital, and Asan Medical Center, among others.
CEO Hong’s 27.42% Stake… Stable
LEMON COMPANY LIMITED was founded in June 2017 by CEO Hong Byung-jin. CEO Hong holds a bachelor’s degree in Electronic Engineering from Kyungpook National University and founded LEMON COMPANY LIMITED after serving as a Senior Technical Consultant at Oracle Korea and CEO of DataBank Systems. He currently serves as a director of the Korea Information Industry Association, Senior Vice Chairman of the Korea Data Industry Association, and Vice Chairman of the Inter-Ministerial Integrated Healthcare Association.
CEO Hong is the largest shareholder of Lemon Healthcare, and his stake is expected to be 27.42% after dilution following the public offering. As the largest shareholder, he is subject to a three-year lock-up period.
Lemon Healthcare’s financial investors (FIs) include Hanwha Asset Management, LSK Investment, BNH Investment, the Korea Technology Finance Corporation, Shinhan Bank, the Korea Development Bank, GS Retail, AJU IB INVESTMENT CO., LTD., and Shinhan Investment Securities.
Excluding the mandatory holding quantity, 4,431,420 shares (33.19%) of LEMON COMPANY LIMITED will be available for trading on the market immediately after the listing. However, the proportion of tradable shares may vary depending on the exercise of stock options by executives and employees, as well as the subscription rights that the lead underwriter, KB Securities, may exercise.
