Dunamu, Kurly, and Toss Face Uncertain IPO Paths... Financial Investors Growing Anxious

Most Companies' Valuations Drop Below FI Investment Timing
IPO Market Faces Severe Cold Spell Amid Stock Market Slump, Cornered Situation

[Asia Economy Reporter Kwangho Lee] The valuation decline of major domestic unicorns (unlisted companies valued at over 1 trillion KRW) such as Dunamu, Kurly, and Toss is becoming serious. Their valuations have fallen below the levels at which financial investors (FIs) made their investments, making exits (investment recoveries) difficult at present.

According to the unlisted stock trading platform ‘Seoul Exchange Unlisted’ on the 10th, Dunamu’s closing price as of the previous day was 115,990 KRW. This contrasts sharply with the 469,000 KRW per share traded on January 10 last year. Its market capitalization also plummeted from around 14 trillion KRW to 2.459 trillion KRW. Due to low trading volume, price fluctuations have been minimal. The most recent transaction was on the 6th, when 6 shares were traded at 118,000 KRW each.

FI secondary share transactions are also hardly taking place. IMM Investment and Kolon Investment offered Dunamu’s secondary shares last year, but buyers have been reluctant. Other FIs also want to dispose of their secondary shares, but the poor market conditions leave them stuck and repeatedly deliberating. This contrasts with Atinum Investment, a major shareholder of Dunamu, which previously sold some secondary shares and recorded a multiple of up to 100 times.

FIs invested in Kurly, once considered a major IPO candidate, are similarly troubled. Four months after passing the preliminary listing review in August last year, Kurly announced the withdrawal of its IPO on the 4th. They stated they would attempt to list again once market conditions improve. However, this also seems difficult. Kurly’s valuation, which once reached 4 trillion KRW, fell below 1 trillion KRW to 903.4 billion KRW in the over-the-counter market as of the 9th. Industry insiders believe an IPO is impossible within this year at such a valuation. FIs such as SK Networks still have not been able to dispose of their secondary shares in Kurly.

An investment banking industry official said, “In Dunamu’s case, trading fee income has sharply declined due to a drop in Upbit’s trading volume, but thanks to previous booms, it holds substantial cash and has the stamina to endure for several years. However, Kurly faces risks due to CEO Kim Seul-ah’s relatively low stake of 5.75% and ongoing operating losses.”

Curly, which passed the preliminary listing review last August, announced the withdrawal of its listing just over four months later on the 4th. Photo by Kim Seul-ah, CEO of Curly.

Toss has also not escaped valuation declines. It traded at 125,100 KRW per share a year ago but is now around 37,000 KRW. L&S Venture Capital and Pebbles Asset Management, which participated in last year’s Series G, as well as U.S. venture capital firms Harvest Growth Capital, Goodwater Capital, and Jasper Ridge Partners, are inevitably facing losses. The industry points out that Toss’s aggressive business expansion has backfired.

The stock market sentiment is also unfavorable. The demand forecasts on the 9th for Hanju Light Metal and TMC, the first IPOs of the year, showed mixed results. Hanju Light Metal recorded success in institutional demand forecasting, but TMC, considered a major candidate, fell short of expectations. However, TMC expressed determination to complete the listing and hopes for success in the general subscription.

Meanwhile, Naver’s active push to sell stakes in startups it has invested in is also a burden for venture capitalists invested in Dunamu, Kurly, Toss, and others. Naver has put shares of major startups, including Bucketplace, operator of ‘Today’s House,’ on the market. Although it offered valuations at an average 50% discount, demands for further discounts are pouring in. Some voices are also hoping for mergers and acquisitions (M&A) among startups.

This content was produced with the assistance of AI translation services.