As Piece Piece Studio Co., Ltd., which runs the fashion brand "Mardi Mercredi" known for its floral graphics, pursues a KOSDAQ listing, the market is focusing on its Oner-centered equity structure and succession method. The founder and a 9-year-old child are listed as the No. 1 and No. 2 shareholders, and relatives including the spouse and sister-in-law hold major stakes.
According to the Financial Supervisory Service's Data Analysis, Retrieval and Transfer System (DART) on the 13th, the No. 2 shareholder holding 1,028,800 shares of Piece Piece Studio Co., Ltd. is the minor daughter of founder and CEO Park Hwa-mok, Park Jae-in. Born in 2017 and 9 years old this year, Park's pre-listing equity stake is 8.6%, the second highest after Park (39.93%).
Piece Piece Studio Co., Ltd. was established in 2020 and is developing "Mardi Mercredi," led by floral graphics and the "MARDI" logo. The brand drew attention in the market as one of the so-called "three Mas," along with Matin Kim and Marithé François Girbaud.
The company is pushing an initial public offering (IPO) on the back of steep top-line growth in recent years, but noise continues over the equity structure and valuation ahead of listing. The listing preparations are in their final stage, with book-building scheduled from the 14th to the 20th, followed by subscriptions from institutions and retail investors on the 26th–27th.
In particular, Park, who is listed as the No. 2 shareholder, is a minor who does not participate in management, and some say it will be hard for her to be free from succession issues if the value of her equity surges after listing. Looking solely at the amount, there is also a possibility that Park could rank near the top among minor stock-rich individuals, ahead of major distribution conglomerate Oner families.
The indicative IPO price range proposed by Piece Piece Studio Co., Ltd. is 19,000 won to 21,500 won. If the price is set at the top end, the value of Park's holdings is estimated at about 22.1 billion won. Even at the bottom end, it exceeds the 19.0 billion won range. As of last year, the No. 1 minor stockholder in the distribution sector was reportedly Jung Ji-sun's eldest daughter, Jung Dana (18), of Hyundai Department Store Group, who held about 3% of Hyundai Green Food (about 16.0 billion won).
Earlier in 2024, Park also drew attention when it became known that she purchased, entirely in cash, a single-family home in Itaewon-dong, Yongsan-gu, Seoul, worth around 6.0 billion won, which actor Yoo Ah-in had sold. At the time, when she was seven, Park signed the 6.3 billion won purchase price entirely in cash without a loan.
In addition to Park, Park's sister-in-law, Lee Su-in, also holds 386,400 shares (3.2% equity), which is twice the size of Park's spouse and inside director, Lee Su-hyun (1.6%). Some of the shares held by Lee Su-in (69,154 shares) will be sold by existing shareholders for cash in the IPO process. However, the largest shareholder group, including Park and Park's child, has pledged a 30-month lock-up, seen as mindful of investor concerns about short-term profit-taking.
The market is also wary of Piece Piece Studio Co., Ltd.'s recent performance trend. Last year, the company's revenue was 117.9 billion won, up a modest 3.6% from a year earlier, while operating profit fell about 41% from 28.2 billion won to 16.7 billion won. In the first quarter of this year as well, revenue fell 30% year over year to 23.4 billion won, and operating profit dropped 75% to 2.0 billion won, showing a worsening profitability trend.
As results have softened, the company value, once cited as high as 1 trillion won, has fallen to the 300.0 billion won range, but some say further adjustment is needed given the competitive landscape. If an overly aggressive valuation leads to a failed debut, it could affect investor sentiment across the fashion industry.
In fact, competing brands are maintaining growth. Ray, which runs Marithé François Girbaud, posted revenue of 191.9 billion won and operating profit of 39.5 billion won last year, up 27.4% and 17.9%, respectively, from a year earlier. HAGO HAUS, which operates Matin Kim, also saw last year's revenue rise 33.9% year over year to 220.1 billion won, with operating profit up 14.9% from 38.8 billion won to 44.6 billion won.
Early this month, there was also controversy over the brand's lookbook concept. As evaluations emerged that the Paris lookbook presented by Mardi Mercredi was similar to luxury brand Chloé in image, composition, and mood, a "dead copy" debate spread across some online communities and social media (SNS). The company later deleted the lookbook.
A Piece Piece Studio Co., Ltd. official said, "It is true that some equity was initially held under the child's name, but it was not at a stage where the current level of corporate growth or an IPO was anticipated at the time," adding, "It is unrelated to a transfer of management control."
The official added, "Relatives are not merely shareholders for investment purposes; they are core personnel who directly participated in the brand's early planning and growth process," and said, "We plan to focus on continued responsible management and enhancing corporate value."