The fashion platform MUSINSA has officially initiated its initial public offering (IPO) process by applying for a preliminary listing review on the KOSDAQ. As MUSINSA's KOSPI listing becomes more tangible, interest is growing in the steps a company must take to enter the stock market.
According to the Korea Exchange, MUSINSA submitted its application for the preliminary listing review for its shares on September 7. The joint lead underwriters for the offering are Korea Investment & Securities and Citigroup Global Markets.
Founded in June 2012, MUSINSA is an online fashion platform that generates revenue through e-commerce, primarily selling clothing. It operates the 'MUSINSA Store,' along with the women's fashion platform '29CM' and its private brand 'MUSINSA Standard.' As of the application date, MUSINSA's shares are held by CEO Jo Man-ho and 26 others, who collectively own 54.2% of the company.
The preliminary listing review assesses whether a company meets the requirements for actual stock market listing. The exchange evaluates both quantitative and qualitative criteria, including financial stability, business continuity, management transparency, and investor protection.
After the review, the listing committee will notify the company of the results. However, passing the preliminary review does not guarantee immediate entry into the stock market, similar to how passing an entrance exam does not complete the registration process. Following this, a public offering process for general investors will take place.
Before the preliminary review, several preparatory steps must be completed, including appointing a designated auditor, signing contracts with lead underwriters, revising the company’s articles of incorporation, and establishing a stockholder association. Preliminary discussions with the exchange regarding the listing are also part of this stage.
During the public offering phase, the company must first submit a securities registration statement to the Financial Services Commission. This statement includes essential information for investors, such as the company's business details, financial data, offering size, and structure. Following this, demand forecasting will be conducted for institutional investors to determine the offering price.
Once the offering price is set, subscriptions will be opened for general investors, and shares will be allocated. After the subscription period ends, the investment funds will be collected, and the company will report the issuance results. This process leads to the final steps of the listing.
The last stage is the actual listing on the exchange. After completing the public offering process, the company will apply for a new listing with the exchange. Once all necessary procedures are completed, investors will be able to trade the shares on the designated date.
If MUSINSA proceeds with its listing, it will follow this outlined process. Notably, for larger companies that attract significant market interest, factors such as company valuation, offering size, and existing shareholder equity structure become critical considerations during the listing process.
However, the specifics of the listing plan, timeline, and offering structure may vary based on decisions made by the company, underwriters, and the exchange's review. Oh Rin-ah, a researcher at LS Securities, stated, "In the upcoming IPO process, maintaining the current revenue growth rate of around 20% while ensuring stable profitability will be crucial evaluation criteria."
MUSINSA is reportedly aiming for a listing in the first half of next year. The market estimates the company's valuation to be around 8 trillion won. Internally, MUSINSA has valued itself at approximately 10 trillion won, but it is expected to target around 8 trillion won during the offering process, applying a discount rate considering market conditions and investor protection.
* This article has been translated by AI.
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