The underwriter group has been finalized for fashion company Musinsa, which is seeking a 10 trillion won valuation. Musinsa plans to apply for a preliminary listing review with the Korea Exchange (KRX) main board in the first half of next year and complete the listing before the year turns.
According to the investment banking (IB) industry on the 1st, Musinsa selected Korea Investment & Securities and KB Securities among domestic firms, and Citigroup Global Markets Securities and JPMorgan among overseas firms, as underwriters.
Citi was picked as the lead underwriter, and JPMorgan is a joint underwriter. However, it has not yet been decided which of Korea Investment & Securities and KB Securities will serve as the lead among the domestic firms.
Earlier, on Oct. 10, Musinsa shortlisted a total of 11 securities firms as candidates for the listing mandate and conducted presentations (PT). Among domestic securities firms, Mirae Asset Securities, KB Securities, Korea Investment & Securities, Samsung Securities, Shinhan Investment & Securities, and Hana Securities were selected as candidates, but the outcome became hard to predict when Mirae Asset, considered the strongest contender, did not participate in the PT and dropped out midway. Among foreign securities firms, all five that threw their hats in the ring — Goldman Sachs, Citigroup, JPMorgan, Morgan Stanley, and UBS — made the shortlist.
Musinsa is said to be seeking a 10 trillion won valuation. Even though transaction volume and operating profit are maintaining growth, some in the industry say 10 trillion won is excessively high. If corporate value is calculated based on the price-earnings ratio (PER), last year's net profit (69.8 billion won) would have to be multiplied by as much as 143 to reach 10 trillion won.
With the underwriter group finalized, Musinsa plans to begin full-fledged preparations and file for a preliminary listing review with the exchange in the first half of next year. The goal is to complete the listing within next year.