10 Trillion-Won Valuations for Goodai Global vs Musinsa: Diverging Expectations and Concerns

[Financial News] The Initial Public Offerings (IPO) of Musinsa and Goodai Global this year are drawing intense attention in the industry. Both companies have finished selecting underwriters and are pushing ahead with listings targeting a 10 trillion won valuation, but market views on the two are sharply divided.

According to industry sources on the 15th, beauty company Goodai Global recently appointed four underwriters for its IPO: Mirae Asset, NH Investment & Securities, Citibank and Morgan Stanley.
Goodai Global, a cosmetics manufacturer and distributor, emerged as a major beauty player after acquiring Beauty of Joseon, which had grown rapidly in the US market, in 2020. Since then, it has focused on expanding its scale by acquiring K-beauty indie brands such as TIRTIR, Round Lab and Skinfood. More recently, it bought US distributor Hansung USA, building a vertically integrated structure.
Goodai Global’s confidence in a 10 trillion won valuation stems from expectations that it could become a “second APR.” APR went public in February 2024 and, by last August, its market capitalization had surpassed 8 trillion won, overtaking leading domestic beauty company Amorepacific. Its share price has continued to climb, and its market cap recently broke through the 10 trillion won mark.
Goodai Global’s revenue last year is estimated at around 1.7 trillion won. This exceeds APR’s 2024 revenue of 1.5273 trillion won. While APR achieved rapid growth with essentially a single cosmetics brand, Medicube, expectations are higher for Goodai Global because it is building a diversified portfolio of global K-beauty brands.

Musinsa, which selected its underwriters earlier, faces a more cautious reception regarding its IPO. Unlike Goodai Global, there are few clear success stories it can point to. The biggest obstacle is the track record of platform companies such as Kurly, Oasis and SSG.com, which have repeatedly attempted but failed to complete listings.
To break free from the limitations of being a pure platform, Musinsa has turned its focus to offline expansion. A key reason for going public is to secure capital for overseas growth. The company aims to open 100 stores in mainland China by 2030 and transform itself into a global fashion company. In Korea, it plans to concentrate on offline as well, increasing the number of its private-label Musinsa Standard stores to 60 by the end of the year. However, it is now reportedly exploring various options for listing, including the Nasdaq Stock Market (NASDAQ), rather than rushing its current IPO plans.
An industry insider said, "As K-beauty and fashion companies grow into global players, expectations are rising, but so are concerns about uncertainty." The person added, "Given current market conditions, there will be deeper scrutiny and debate over what their valuations should be."
unsaid@fnnews.com Kang Myung-yeon Reporter