Fashion platform Musinsa has filed for pre-listing review with the Korea Exchange, drawing attention to potential IPOs by other K-fashion and K-beauty companies. Goodai Global, a K-beauty firm, is also preparing for an IPO, making it crucial to see what level of corporate valuation both companies will receive during their public offering processes. Given that valuations around 10 trillion won are being discussed, the outcomes of these IPOs are expected to influence how fashion and beauty companies are valued in the market.
According to data from the Korea Exchange on the 8th, Musinsa submitted its application for pre-listing review with the KOSPI market on the previous day (the 7th). The lead underwriters are Korea Investment & Securities and Citigroup Global Markets Securities, while KB Securities and JPMorgan will serve as co-managers. If the exchange's review proceeds smoothly, a public offering is expected later this year, with listing anticipated in early next year.
Musinsa began as an online community in 2001 and grew into a fashion platform after launching Musinsa Store in 2009. The company has expanded its business scope through Musinsa Standard and 29CM, while also accelerating its offline store operations and overseas ventures. Last year, the company reported revenue of 1.4679 trillion won and an operating profit of 140.5 billion won, representing increases of 18.1% and 36.7%, respectively, compared to the previous year.
Market analysts estimate Musinsa's corporate valuation at between 8 trillion and 10 trillion won. This represents a significant increase from its approximate 3 trillion won valuation during its 2023 investment round. In the over-the-counter market, recent secondary share transactions have reportedly reached around 4 trillion won. The key question now is how much premium Musinsa will receive in its IPO.
Musinsa's business structure also presents variables for its valuation. With a model combining platform fees, private brand (PB) and brand distribution, and offline operations, the company could be evaluated differently depending on whether traditional fashion firms or e-commerce platforms are used as comparables. Expansion of overseas offline stores in cities including Shanghai, China, along with strong global business performance, is seen as growth potential that could support a higher corporate valuation.
In the K-beauty sector, Goodai Global is preparing for an IPO. Starting with the brand Joseonmirae, the company has acquired brands such as TirTir and Skin1004 to expand its global operations and recently broadened its portfolio through brand acquisitions. Market discussions suggest a corporate valuation of around 10 trillion won, and the company could file for pre-listing review as early as this month.
A common factor between the two companies is the need to prove their growth potential beyond the domestic market. Musinsa is highlighting expansion of its global fashion platform and offline operations, while Goodai Global emphasizes increasing overseas sales of its K-beauty brands as key growth drivers.
The outcomes of these IPOs are expected to influence corporate valuations for later-coming fashion and beauty companies. If Musinsa receives a higher multiple than traditional fashion firms, it could increase the growth premium for companies that combine platforms with brands. Similarly, if Goodai Global is highly valued for its global K-beauty business, it would send a positive signal for IPOs of beauty companies with high overseas revenue shares.
In the fashion industry, Highlight Brands is also pursuing an IPO with the goal of listing in the first half of 2027. As more fashion and beauty companies prepare for listings alongside Musinsa and Goodai Global, market attention is focused on how investors will value growth potential and profitability during future public offerings. An industry executive stated, "It has become increasingly difficult to justify high corporate valuations for fashion and beauty companies based solely on domestic performance," adding, "The extent of revenue expansion in global markets and the ability to secure profitability will be key criteria determining future IPO valuations."
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