Musinsa, the leading online fashion marketplace in South Korea, will likely delay its initial public offering (IPO) to the second quarter of next year, according to sources in the investment banking sector on August 29. The company is considering sending out a request for proposal (RFP) to securities firms to select a lead underwriter after the release of its 2023 financial report.
“Musinsa founder and chairman Cho Man-ho wants to delay the IPO until April of next year after assessing the company’s performance this year,” said an industry insider familiar with the matter. Musinsa expects the company’s valuation to reach 5 trillion won ($3.8 billion) by then, higher than the currently discussed range of 3 to 4 trillion won.
Last year, the company’s revenue reached a record 993.1 billion won, up 40.2% from the previous year. Musinsa’s earnings before interest, taxes, depreciation, and amortization rose by 15.9% to 83.9 billion won. Annual gross merchandise value (GMV), which measures the total value of goods sold on a platform, hit 4 trillion won, up 17% year-on-year.
The market has been eyeing Musinsa’s plans to go public since last year, given the company’s status as the top fashion platform in the country. Successfully managing Musinsa’s listing could give a securities firm a competitive edge in the IPO market, boosting its credibility and track record for future IPOs in the platform sector.
Musinsa raised a $190 million round of Series C funding led by Kohlberg Kravis Roberts (KKR) and Wellington Management. The investment boosted Musinsa’s valuation to approximately 3.5 trillion won. Other major investors include IMM Investment, Sequoia Capital, and Korea Development Bank (KDB).
This article was originally published on August 29.
