Goodai Global Eyes APR-Level Valuation Ahead of IPO

Goodai Global, which has officially announced its initial public offering (IPO) plans, is targeting a valuation comparable to APR (278470.KS), the leading K-beauty stock, according to investment banking sources.

The company's ambitious valuation expectations appear to stem from its portfolio of indie brands with strong international recognition, including Beauty of Joseon and TIRTIR, amid sustained global demand for K-beauty products.

According to investment banking industry sources on December 8, Goodai Global, which is pursuing a listing next year, is seeking a valuation multiple similar to APR's. Based on the day's closing price, APR's market capitalization stood at 10.09 trillion won ($7.3 billion), with a price-to-earnings ratio (PER) of 43.45. A simple calculation based on Goodai Global's net profit of approximately 108.6 billion won last year suggests the company is targeting a valuation of at least 4.6 trillion won ($3.3 billion).

While both APR and Goodai Global operate in the K-beauty sector, their growth strategies differ significantly. APR entered the beauty device business in 2021 and gained global recognition starting in 2022, driving rapid growth. After listing on the Korea Exchange (KOSPI) in February last year, the company's stock surged 439% this year alone, buoyed by K-beauty's global popularity. In the process, APR overtook Amorepacific to become the largest cosmetics company by market capitalization.

APR's financial performance has also shown consistent upward momentum. In the third quarter of this year, the company recorded revenue of 385.9 billion won and operating profit of 96.1 billion won, representing year-on-year increases of 121.7% and 252.8%, respectively. "APR is continuing its global mega-hit streak from beauty devices to cosmetics," said Choi Jong-kyung, a researcher at Heungkuk Life Insurance. "The company is maintaining overwhelming earnings growth."

Unlike APR, which grew explosively in global markets by developing its own brands, Goodai Global has adopted a strategy of acquiring established Korean indie brands with overseas recognition, positioning itself as "Korea's L'Oréal." Notable acquisitions include Beauty of Joseon, which gained fame overseas for its "K-sunscreen," as well as TIRTIR and Skinfood, which first attracted attention in Japan. "Goodai Global's subsidiary brands are building recognition through online channels, which is leading to offline channel expansion overseas," said Cho So-jung, a researcher at Kiwoom Securities. "The company is expected to grow into a global beauty player with stability and scalability."

Goodai Global, which has been expanding through aggressive brand mergers and acquisitions, raised substantial capital in August this year by issuing 800 billion won in convertible bonds. The fundraising reportedly included a condition requiring the company to complete its IPO within three years.

Some industry observers expect Goodai Global to send out requests for proposals (RFPs) to domestic and foreign securities firms for lead underwriter selection by year-end. However, given the company's trillion-won-level valuation target, some speculate the RFP distribution may be delayed to early next year to accommodate participation from foreign securities firms. "Considering Goodai Global's valuation, foreign securities firms are likely to be included in the underwriting syndicate," an investment banking industry source said. "The selection process could be delayed as foreign securities offices often take year-end breaks."