This article was displayed on the ChosunBiz MoneyMove (MM) website at 5:59 p.m. on June 29, 2026.
As Sono International moves to push ahead with an initial public offering (IPO), it has reportedly set an initial target valuation in the low 3 trillion won range. Compared with the roughly 4 trillion won valuation discussed when it raised a pre-IPO investment early last year, it has significantly lowered its sights.
Sono International is said to be setting its overall valuation using a sum-of-the-parts (SOTP) approach that assesses the value of its core resort business and the equity value of Trinity Airways (formerly T'way Air) separately. Although Trinity Airways, consolidated into the group, is posting large losses and could prove a stumbling block, some say applying the SOTP method makes it feasible to derive a valuation in the low 3 trillion won range.
According to the investment banking (IB) industry and the Korea Exchange (KRX) on the 29th, Sono International filed for a preliminary listing review with the KOSPI Market Division on the 26th.
Sono International reportedly received recognition for a valuation of about 4 trillion won (pre-discount basis) when it raised a pre-IPO investment in Feb. 2025. The price tag was set based on 2024 results.
However, the valuation currently under consideration by the company and its underwriter syndicate is said to be in the low 3 trillion won range. While the core resort business delivered record results since the company's founding, overall profitability deteriorated sharply due to the consolidation of Trinity Airways. Sono International holds 41.95% equity in Trinity Airways. However, including the indirectly held stake through affiliates such as T'way Holdings, the group-level equity stake in Trinity Airways rises to 64.28%.
Last year, Sono International's revenue on a consolidation basis was 2.093 trillion won. That is more than double the prior year's consolidated revenue (973.5 billion won). In contrast, operating profit fell to 89.9 billion won, less than half of the prior year's 208.1 billion won.
According to the audit report, Sono's resort and hotel operations posted external revenue of 1.0338 trillion won and operating profit for the institutional sector of 245.2 billion won last year. However, the aviation institutional sector posted external revenue of 975.3 billion won and an operating loss for the institutional sector of 152.8 billion won.
Therefore, Sono International is said to have chosen to derive its valuation using the SOTP method. SOTP applies no single multiple to the company's overall results; instead, it calculates the value of each business unit separately and sums them to determine the valuation. In Sono International's case, it applies an EBITDA multiple to the core resort and hotel business to price the business, then adds the value of the Trinity Airways equity and subtracts the core business's net debt.
To calculate Sono International's valuation using SOTP, you add the aviation institutional sector's estimated EBITDA loss of about 60 billion won to the overall consolidated EBITDA of about 310 billion won. In other words, the EBITDA of the core resort institutional sector comes to about 370 billion won.
First, by applying an appropriate multiple to the core EBITDA to estimate the core enterprise value (EV), then adding the equity value of Trinity Airways and subtracting the core net debt, you arrive at Sono International's final valuation (equity value).
Applying a 10x multiple to Sono International's core EBITDA of about 370 billion won yields a core EV of about 3.7 trillion won. This reflects that the EV/EBITDA of Hotel Shilla and Paradise is around 9–10x.
Next, you add the equity value of Trinity Airways, and because it is a listed company, it is most natural to reflect its market price. Trinity Airways currently has a market capitalization in the low 300 billion won range, and applying Sono International's consolidated equity stake of 64.28% yields an equity value for Sono of about 200 billion won. In short, adding about 200 billion won to the core EV of about 3.7 trillion won and subtracting the core net debt gives the appropriate valuation for Sono International.
The issue is the core net debt. The audit report does not disclose net debt attributable to the core business, such as resorts and hotels, separately. However, to derive an equity value in the low 3 trillion won range using SOTP, the calculation suggests that core net debt needs to be in the mid-800 billion won range.
It remains uncertain whether investors will judge a valuation in the low 3 trillion won range to be appropriate. Since consolidation, Trinity Airways has expanded Sono International's scale but severely damaged profitability at the same time. If losses in the aviation institutional sector persist, the market is likely to view Trinity Airways not as a 200 billion won equity asset but as a risk draining the parent's cash flow. In particular, if the risk of additional funding support for Trinity Airways comes to the fore, investor sentiment could turn more conservative.