Nine-Year-Old Daughter Holds 20 Billion Won Stake as Second-Largest Shareholder... "Mardi" Faces Governance Test Ahead of IPO

Founder’s Child Holds 8.6% Stake

Growth as a ‘Three Ma’ Brand, but Profitability Deteriorates

Succession Controversy Emerges... IPO Outlook Uncertain

PPS Studio, which is seeking to go public on the KOSDAQ market with its fashion brand "Mardi Mercredi," is already facing scrutiny over its governance structure even before the start of its IPO process. This is due to the fact that, amid a recent slowdown in growth, a significant portion of the company's shares is concentrated among the founder and related parties, including minor children. In particular, controversy appears inevitable as the founder's 9-year-old child, who does not participate in management, has become the second-largest shareholder after CEO Park Hwamok, raising questions about the legitimacy of succession and the potential for massive capital gains after the listing.

According to industry sources on May 13, PPS Studio will conduct a book-building process for institutional investors from May 14 to 20. After that, the public subscription for retail investors will be held on May 26 and 27, followed by the KOSDAQ listing procedure. The joint lead managers for the IPO are Mirae Asset Securities and NH Investment & Securities. The indicative price range is 19,000 to 21,500 won per share, with a total of 2,272,637 shares to be offered. The total offering amount is expected to be between 43.2 billion and 48.9 billion won.

Mardi Mercredi.

The company's governance structure is drawing particular attention ahead of the listing. The largest shareholder of PPS Studio is CEO and founder Park Hwamok, who owns 39.93% of the shares. The second-largest shareholder is Park Jaein, Park's nine-year-old child, who owns 1,028,800 shares, representing an 8.6% stake. Park Jaein, who is nine years old this year, is a minor and does not participate in company management.

This has led some in the market to view PPS Studio's listing as more than a typical brand company's IPO, suggesting that it could serve as an opportunity for the owner family's stake value to increase. Based on the upper end of the IPO price range, Park Jaein's stake is valued at approximately 22.1 billion won. Even at the lower end, the value exceeds 19 billion won. If the share price exceeds the IPO price after listing, the asset value of the minor shareholder could rise further.

Park Jaein previously attracted attention through a real estate transaction. In 2024, it became known that Park acquired a standalone house in Itaewon-dong, Yongsan-gu, Seoul, previously owned by actor Yoo Ah-in and valued at around 6 billion won. At the time, Park, who was seven years old, reportedly purchased the house for 6.3 billion won entirely in cash, without any loans.

PPS Studio is a fashion brand operator established in 2020. Its flagship brand, Mardi Mercredi, gained widespread recognition through its notable "Flower Mardi" graphic featuring large petals. After initially focusing on womenswear, the company expanded its product lineup to include the kids' line "Le Petit," sports line "Actif," and footwear line "Les Pommes." In 2024, the company acquired "Hello Sunrise" and launched a new brand, "Vacant Archive." PPS Studio has also accelerated brand expansion by collaborating with global brands such as Crocs, Casetify, Puma, and Moleskine.

In the domestic fashion market, Mardi Mercredi has attracted attention as one of the so-called "Three Ma" brands, alongside "Marithe Francois Girbaud" and "Matin Kim." However, the company's recent performance shows signs of slowing. Sales, which were 800 million won at the time of the company's founding in 2020, grew to 113.8 billion won in 2024 and 117.9 billion won in 2025, but the growth rate has been limited. Compared to competing brands that scaled up to over 200 billion won in sales last year, PPS Studio's expansion is considered relatively modest.

Profitability has also deteriorated. The company's operating profit dropped about 41%, from 28.2 billion won last year to 16.7 billion won. In the first quarter of this year, sales came in at 23.4 billion won, down 30% year-on-year, while operating profit plunged 75% to 2 billion won. With top-line growth slowing and profitability weakening, whether the company can improve its results after listing is expected to be a key concern for investors.

An official from the financial investment industry commented, "In the recent IPO market, investors are not just focused on whether the IPO price is fair, but also on who ultimately benefits from the listing profits. When minors and related parties are major shareholders, the market is likely to raise questions about the source of funds, payment of gift taxes, and future succession plans."

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