From 4 trillion won to 10 trillion? Musinsa enters IPO with valuation challenge

Musinsa is entering the public markets with a valuation question that could define its IPO: can a company valued at about 4.2 trillion won in a recent secondary-share transaction persuade investors to accept a price of up to 10 trillion won?

The South Korean fashion platform has filed for a preliminary review to list on the KOSPI, moving formally into the IPO process. Market attention is now focused on the valuation it can command. The target of up to 10 trillion won would be more than twice the valuation reportedly used in last month’s sale of existing shares.

Musinsa was valued at about 3.5 trillion won when it raised investment in 2023. Since then, it has continued to expand rapidly and recorded its highest-ever first-half revenue this year. That growth provides the main support for its public-market ambitions.

But the picture is not uniformly strong. Musinsa’s consolidated operating profit declined in the first half. The company’s valuation will depend on whether it can preserve profitability in its core business while expanding its global operations quickly enough, the article says.