Musinsa considers going public to expand business globally
Musinsa submitted a preliminary listing review application to the Korea Exchange, which the fashion platform said was to "assess whether it met the listing requirements [for the Kospi] and potential benefits of going public."
A person walks past a Musinsa Standard store in central Seoul on Aug. 4.
NEWS1
Korea’s major fashion platform Musinsa has submitted a preliminary listing review application to the Korea Exchange, the bourse operator said on Monday.
Musinsa is seeking to go public on the benchmark Kospi as part of its plans to expand its business globally. The company is expected to go public in the first half of next year, according to local media reports.
“The purpose of applying for a preliminary listing review is to assess the viability of an initial public offering [IPO], which we are considering as a funding option […] for becoming a global company,” Musinsa said. “Through the review, [we] plan to assess whether we meet the listing requirements and the potential benefits of going public.”
Even before submitting the application, Musinsa — Korea’s first fashion unicorn, backed by global investors including KKR, Sequoia Capital and Wellington Management — has faced scrutiny over its ambitious valuation target. Musinsa has internally valued the company at 10 trillion won ($7.5 billion) but is targeting a valuation of around 8 trillion won for the IPO to reflect market conditions and protect investors, according to a report by the Korea Economic Daily.
As of the end of June, Musinsa founder Cho Man-ho was the company’s largest shareholder, with a 51.75 percent stake. Musinsa reported 821.7 billion won in consolidated revenue in the first half of the year, up 22.6 percent from the same period the previous year. Operating profit, however, fell 11.2 percent to 52.3 billion won.
Since launching as an online platform for shoes in 2001, Musinsa has become a prominent name in an industry dominated by conglomerates such as Samsung C&T and LF. Now, style-savvy locals and tourists consider it a must-visit destination due to its affordable yet cutting-edge streetwear.
The company’s growth was fueled by its strong sales, the launch of its in-house brand Musinsa Standard and lifestyle brand 29Edition and the acquisition of rivals, including 29CM.
BY JIN MIN-JI [[email protected]]
