"Tripled in Value Yet Still Not Selling..." IMM PE Bets on Long-Term Ownership of AirFirst [fn Market Watch]

[Financial News] IMM Private Equity (IMM PE) is making another major bet on industrial gas company AirFirst. The deal values 100% of AirFirst's equity at approximately 4.2 trillion won, with 65% of the stake—worth about 3 trillion won—being transferred to a continuation fund. After acquiring AirFirst in 2019 and recovering a substantial portion of its investment by selling a 30% stake in 2023, IMM PE has now chosen to combine an exit for existing investors with long-term ownership of a high-quality asset. In effect, it is injecting significant capital once again into an asset that has already delivered investment gains.
According to investment banking industry sources on the 6th, IMM PE is raising funds for AirFirst's continuation transaction, dubbed Project Evergreen, with the aim of completing it in November. AirFirst's 100% stake is currently valued at approximately 4.2 trillion won. The roughly 65% stake involved in the transaction would be worth about 2.73 trillion won based on a simple calculation, putting the total deal value close to 3 trillion won.
The financing structure is also taking shape. IMM PE plans to raise approximately 1.8 trillion won in equity and more than 1 trillion won in acquisition financing. Domestic institutional investors, including pension funds, mutual aid associations, banks and securities firms, are reportedly considering commitments.
The key point of this transaction is that it is not simply an extension of the fund's maturity, but rather IMM PE's strategy of reinvesting after an exit. IMM PE acquired Linde Korea in 2019 and developed it into AirFirst. At the time, the company's enterprise value based on a 100% stake was approximately 1.3 trillion to 1.4 trillion won. It subsequently raised its valuation by expanding its customer base and production capacity, particularly in the semiconductor sector.
In 2023, IMM PE sold a 30% stake to global asset manager BlackRock for approximately 1.1 trillion won. The enterprise value recognized at the time was about 3.7 trillion won. By selling a minority stake, IMM PE recovered a substantial portion of its initial investment while retaining control.
Applying the 4.2 trillion won valuation being discussed for the current transaction, AirFirst's value has grown roughly threefold in about seven years since IMM PE acquired it.
IMM PE's decision to retain the asset long term rather than sell the entire company reflects its confidence in AirFirst's additional growth potential. The company has secured stable cash flow through long-term supply contracts and is also expected to benefit from increased semiconductor capital spending driven by the expansion of artificial intelligence.
An investment banking industry official remarked, "AirFirst is a flagship portfolio company whose enterprise value IMM PE has significantly increased since its acquisition. Since it has already realized investment gains by selling part of its stake, this continuation transaction can be viewed as a long-term ownership strategy aimed at further increasing the company's value."
If the transaction closes as scheduled, IMM PE will provide existing investors with an opportunity to exit while joining new investors in AirFirst's next growth cycle. Another senior private equity industry official added, "It is noteworthy because IMM PE's 'second act for AirFirst' is opening—not by ending with a single exit, but by making a proven asset an investment target once again."
[email protected] Kim Kyung-ah Reporter