Goodai Global, whose valuation is being discussed as high as 10 trillion won, has begun finalizing its puzzle ahead of an initial public offering (IPO) early next year. Although it has grown significantly by acquiring global K-beauty brands such as Chosun Beauty, Skin1004, and Tirtir, there are still significant hurdles to overcome before listing. Complicated equity structures, the issue of financial investor (FI) exits, and the planned listing of its subsidiary Creaver in Japan have introduced considerable variables into the IPO schedule and method.
According to relevant industry sources on the 25th, Goodai Global is conducting pre-negotiations with the Korea Exchange's Stock Market Division, targeting a request for preliminary review for listing on KOSPI next month. Mirae Asset SecuritiesLee (CEO) serves as the lead underwriter, while NH Investment & Securities, Citigroup Global Markets Securities, and Morgan Stanley participate in the underwriting syndicate.
The results support the expectation of a listing. Goodai Global's consolidated revenue for last year was 1.4717 trillion won, and its operating profit was 273.4 billion won. Including the performance of acquired brands prior to their acquisition, revenue would increase to around 1.75 trillion won, and operating profit would rise to approximately 400 billion won. However, given that the company has expanded its scale through aggressive mergers and acquisitions (M&A), corporate governance issues and financial burdens remain challenges to be resolved before the listing.
The most complex part is the investment structure leading from 'Goodai Global→TM Beauty→Creaver Corporation'. TM Beauty's sales last year were 677.9 billion won, accounting for about 46% of Goodai Global's consolidated sales. However, while Goodai Global holds a 53.51% stake in TM Beauty, the remaining 46.49% is held by multiple FIs. Multiple FIs also participated in the acquisition of major brands including Creaver, Seorin Company, and Skin Food.
Goodai Global had pursued a plan to directly acquire shares of Creaver FI ahead of its listing to simplify its corporate governance structure, but the deal fell through due to an inability to bridge the price gap. Ultimately, Goodai Global and Creaver decided to pursue listings in South Korea and Japan, respectively. Creaver aims to list on the Tokyo Stock Exchange in the third quarter of next year through Creaver Holdings, which it established in Japan.
The issue lies in the overlapping listings of a parent company and its subsidiary. If Goodai Global lists first on the domestic stock market and then Creaver proceeds with an IPO in Japan, shareholder protection procedures related to dual listings may be applied. Conversely, if Creaver lists first, the regulations and review processes applicable during Goodai Global's IPO could differ. This is why the calculation surrounding the listing order has become complicated as the subsidiary's overseas listing becomes intertwined.
Financial burdens also remain. Six entities — IMM Private Equity, Premier Partners, IMM Investment, Kiwoom PE, JKL Partners, and Company K Partners — invested a total of 800 billion won in convertible bonds (CBs) in Goodai Global. Creaver has also recognized potential additional funding obligations of 325.6 million won as long-term derivative liabilities, given the condition that it must make further capital contributions to TM Beauty if an eligible listing is not completed.
Goodai Global is recently adjusting its acquisition strategy. Instead of a full acquisition, it has proceeded with a strategic investment in Toriden. The company is also reorganizing its management team ahead of an IPO by appointing former CJOlive Young CEO Koo Chang-geun as co-representative.
Goodai Global stated, "We are currently preparing for listing and are proceeding with all necessary procedures without any issues while complying with government policies."
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