NH Investment & Securities Signs Lead Underwriting Agreement for Concreteworks IPO

by Song Hwajung

Published 29 Jul.2024 10:59(KST)

NH Investment & Securities announced on the 29th that it has signed a lead underwriting agreement for the initial public offering (IPO) to pursue a KOSDAQ listing with domestic fashion company Concrete Works.

[Photo by NH Investment & Securities]

The signing ceremony was held at NH Investment & Securities' Yeouido headquarters, attended by Yoon Byung-woon, CEO of NH Investment & Securities, and Chae Myung-seok, CEO of Concrete Works, among others.

Concrete Works aims to accelerate growth by brand, expand product categories, and increase both online and offline presence through this IPO, positioning itself as a global fashion company. In 2023, unisex casual brand 'Codegraphy' recorded sales of 41.4 billion KRW, and men's casual brand 'Kimuor' achieved 13.6 billion KRW, marking over 55 billion KRW in revenue growth within four years since its founding. Notably, Codegraphy is a representative brand that rapidly grew in the online market and expanded its sales channels offline last year, continuing its sales growth. The company is also showing growth in trend-sensitive women's apparel and accessories categories, expanding product planning and distribution networks for its women's line. The company targets 76 billion KRW in sales for 2025, about a 27% increase from this year. Domestically, it plans to focus on expanding its scale through launching new brands. Building on the momentum that established Codegraphy and Kimuor in the fashion market within a short period, it will launch 'Wild Things' for the 2024 Fall/Winter (F/W) season. Wild Things is an outdoor brand originating from the United States, with which a licensing agreement was signed earlier this year. Wild Things will first introduce the 2024 F/W pre-launch products and a collaboration with Mastermind in October. Starting from the 2025 Spring/Summer (S/S) season, the company plans to actively develop products centered on military and outdoor-based items reinterpreted in a modern way, primarily through online platforms, aiming to quickly respond to market changes and establish a foothold in the fashion market within a short time.

With the goal of becoming a global fashion company, last year Codegraphy signed exclusive distribution agreements with two Japanese local fashion companies, AUNTIEROSA and YUTORI, and entered the Japanese market in March this year, achieving significant results. Within five days of starting online sales, it recorded sales of 100 million KRW, and on the day it opened stores at Nagoya Parco Department Store and Osaka shopping mall Hep Five, it achieved sales of 12 million KRW and 18 million KRW respectively. This was the highest performance among clothing brands on the same floor, attracting attention from the local industry. Additionally, through collaborations with Japanese women's street brand HTH, releasing collaboration products with global brands in October, and entering Japanese outlet stores, the company plans to solidify its position in the Japanese market through active marketing both online and offline.

An NH Investment & Securities official stated, "Concrete Works has demonstrated the capability to drive explosive sales growth based on online platforms, and there is positive response in overseas markets such as Japan for brands recently popular in Korea. Therefore, we believe there is high growth potential for offline and overseas markets in the future."