Musinsa, a South Korean fashion platform backed by KKR & Co., is accelerating its timeline for an initial public offering on Korea's main bourse, the KOSPI, aiming for an early next year listing. The company recently completed preliminary discussions with the Korea Exchange and plans to seek a preliminary review around September, with a public offering potentially launching within the year.
The listing push comes amidst efforts to address skepticism regarding its initial $7.2 billion (10 trillion won) valuation. Despite this, an investment banking source noted that Musinsa's strong earnings and growth potential, with first-quarter revenues of 363.6 billion won and operating profit of 19 billion won (up 24% and 8% year-over-year respectively), suggest a $7.2 billion valuation might not be impossible. However, a recent sale of treasury shares to employees implied a corporate value of just $3.2 billion (4.45 trillion won), significantly lower than the target.
Musinsa has enlisted Citi as the lead underwriter, with JPMorgan Chase & Co. as co-underwriter. Local banks such as KB Securities Co. and Korea Investment & Securities Co. are also involved. The company had previously considered listing in both Seoul and New York, depending on valuation prospects. The Korea Exchange is reportedly keen to attract Musinsa, aligning with the government's push to bring solid companies to the KOSPI market.
A variable in the IPO process is founder and Chairman Cho Man-ho's independent property development venture, Lafel, which is undertaking a senior residence project in Hannam-dong. While separate from Musinsa's fashion business, industry observers have flagged this as a potential concern during the exchange review process, raising questions about Chairman Cho's commitment to Musinsa.
