This article was displayed on the ChosunBiz MoneyMove (MM) site at 6:13 a.m. on Apr. 10, 2026.
Fashion brand operator Piece Piece Studio Co., Ltd. has begun the process for an initial public offering to list on the KOSDAQ market. It proposed a valuation of 300 billion won. It once drew attention with its "flower graphic" and was even talked about as being worth 1 trillion won, but its valuation has fallen sharply. Even the underwriter that had moved to buy existing shares is now sitting on losses.
According to investment banks and the financial investment industry, Piece Piece Studio Co., Ltd. submitted a securities registration statement to the Financial Services Commission on the 7th, kicking off the KOSDAQ listing process in earnest. It scheduled institutional investor book-building to start on May 11. General subscriptions will follow starting on the 20th of the same month. If all goes as planned, it will list in early June.
In the listing process, the company plans to offer 2,272,637 shares. This includes 2 million new shares and 172,637 existing shares. It presented an indicative price range of 19,000 to 21,500 won per share. The offering size is about 43.2 billion to 48.9 billion won. The market capitalization after listing is estimated at 269.3 billion to 304.8 billion won.
Its valuation has shrunk significantly compared with the rosy outlook of the past. Piece Piece Studio Co., Ltd. was valued at 1 trillion won when it selected its IPO underwriter in 2024. That figure applied a PER of 25 times to 2023 net profit (20.7 billion won), and at the time brokerages vied to put a high price on it, citing the brand's scalability.
Piece Piece Studio Co., Ltd. rose to fame with the women's designer brand Mardi Mercredi launched in 2018. Fronted by flower graphics, Mardi Mercredi built brand recognition at home and abroad and became a brand generating 100 billion won in sales. In particular, 2024 sales were 108.6 billion won, up 57% from the previous year.
The drop in valuation stems from faltering profitability. Piece Piece Studio Co., Ltd. posted consolidated sales of 117.9 billion won last year, up 3.6% on-year, but operating profit fell a steep 41% to 16.7 billion won. Over the same period, net profit also declined about 36%, from 17 billion won to 11 billion won.
A headwind was that the popularity of Piece Piece Studio Co., Ltd.'s core brand, Mardi Mercredi, has passed its peak. Although Mardi Mercredi expanded its product lines from athleisure (Actif) to kids (Les Petits) and shoes (Les Pompes), its mainstay women's line contracted. At the same time, selling and administrative expenses increased due to marketing expansion and other factors.
What stands out is the move by the lead underwriter Mirae Asset Securities. In April last year, Mirae Asset Securities preemptively bought 72,000 shares of Piece Piece Studio Co., Ltd. through an existing-share transaction. At the time, it made an aggressive investment on optimism about the company's growth, but it is now in an unrealized loss position.
Specifically, Mirae Asset Securities purchased 72,000 shares at 27,449 won per share. That was 44% higher than the bottom of the indicative IPO price range; even if the offer price is set at the top, 21,500 won, Mirae Asset Securities would face a loss of about 6,000 won per share. The paper loss rate exceeds 21%.
Mirae Asset Securities has also faced controversy over a conflict of interest. Concerns have been raised that the lead underwriter could forcibly defend the offer price to at least break even. The company also stated in its securities registration statement that "the listing sponsor has acquired existing shares," noting that "there is a possibility of a conflict of interest."
Piece Piece Studio Co., Ltd. appears to be pushing ahead with the listing even at a lower valuation because it needs to raise funds to expand global marketing and more. Of the IPO proceeds, the company allocated 15 billion won for operating funds. It also included 2.5 billion won for repayment of borrowing fund in its use-of-proceeds plan. In addition, it bears a penalty surcharge risk of about 500 million won due to failure to file a securities registration statement during a past paid-in capital increase.
A source in the securities industry said, "The underwriter presenting a band below its own acquisition price could mean the IPO's success is that urgent," adding, "Investors should be mindful that when the underwriter's three-month lock-up after listing is lifted, a wave of 'breakeven sales' could hit the market."