Beauty medical device maker Viol surged to its daily trading limit for the second consecutive session Monday as private equity firm VIG Partners continues accumulating the remaining publicly held shares following its successful tender offer.
The Korean company, which manufactures aesthetic equipment including its flagship Scarlet device for skin elasticity treatments, hit the Korea Exchange’s 15% upper price limit as soon as trading opened. With VIG Partners now controlling 96.31% of outstanding shares, the minimal remaining float has created extreme volatility.
VIG Partners initially secured about 85% of the company through a tender offer that concluded in July, paying 12,500 won ($9.37) per share. The Seoul-based private equity firm has since been purchasing remaining shares on the open market at the same price, providing what it calls “liquidity and exit opportunities for remaining minority shareholders.”
The acquisition marks VIG Partners’ second investment from its fifth fund, following last year’s purchase of biofuel supplier Biofuel Holdings. The firm manages over $1.5 billion across 13 portfolio companies and has been expanding its beauty and cosmetics holdings to capitalize on the growing K-beauty trend.
The stock price volatility reflects typical squeeze-out dynamics when controlling shareholders pursue full ownership ahead of delisting proceedings.
