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

PisPisStudio, the company behind the fashion brand "Mardi Mercredi," is facing scrutiny over its ownership structure even before starting its KOSDAQ IPO process. This is due to a recent slowdown in performance growth, while a significant portion of the company's shares is concentrated among the founder and related parties—including minor children. In particular, the fact that a 9-year-old child, who does not participate in management, has become the second largest shareholder after CEO Park Hwamok is expected to spark controversy surrounding the sizable valuation gains and succession legitimacy following the IPO.

According to industry sources on May 13, PisPisStudio will conduct institutional investor book-building from May 14 to 20. This will be followed by a public subscription for retail investors on May 26 and 27, leading up to the KOSDAQ listing. Mirae Asset Securities and NH Investment & Securities are acting as joint lead underwriters. The desired offering price range is between 19,000 and 21,500 won per share, with 2,272,637 shares being offered. The total fundraising target is between 43.2 billion and 48.9 billion won.

The company's governance structure is a key area of focus ahead of the listing. The largest shareholder of PisPisStudio is its founder and CEO, Park Hwamok, who owns a 39.93% stake. The second-largest shareholder is Park's child, Park Jein, who is 9 years old this year. Park Jein holds 1,028,800 shares, representing an 8.6% stake. At 9 years old, Park Jein is a minor who does not participate in the company's management.

For this reason, some in the market view the IPO of PisPisStudio not just as a routine public offering by a brand company, but as a potential opportunity for the owner family to increase their equity value. Based on the upper end of the offering price range, Park Jein's stake is valued at approximately 22.1 billion won. Even at the lower end, it exceeds 19 billion won. If the share price surpasses the offering price after listing, the value of the minor shareholder's assets could rise even further.

Park Jein previously drew attention for a real estate transaction. In 2024, it became known that Park had purchased a stand-alone house in Itaewon-dong, Yongsan-gu, Seoul, previously owned by actor Yoo Ah-in, for about 6 billion won. At the time, when Park was seven years old, it was reported that the house was purchased entirely in cash for 6.3 billion won, without any loans.

PisPisStudio is a fashion brand operator established in 2020. Its flagship brand, Mardi Mercredi, has grown in popularity for its bold floral graphic, "Flower Mardi." After expanding through its focus on women's apparel, the company launched the kids' line "Les Petits," the sports line "Actif," and the shoes line "Les Pommes," diversifying its product lineup. In 2024, PisPisStudio acquired "Hello Sunrise" and introduced the new brand "Vacant Archive." The company has also accelerated its brand expansion via collaborations with global brands such as Crocs, Casetify, Puma, and Moleskine.

Mardi Mercredi has gained attention in Korea's fashion market alongside "Marithe Francois Girbaud" and "Matin Kim," collectively known as the "3 Ma" brands. However, the company's recent performance has shown signs of slowing. While revenue increased from 800 million won in 2020 (the year of incorporation) to 113.8 billion won in 2024 and 117.9 billion won projected for 2025, the growth rate has been limited. Compared to rival brands that expanded to over 200 billion won in revenue last year, PisPisStudio's expansion is considered relatively modest.

Profitability has also deteriorated. Last year, the company's operating profit dropped from 28.2 billion won to 16.7 billion won—a decrease of about 41%. In the first quarter of this year, sales fell 30% year-on-year to 23.4 billion won, and operating profit plunged by 75% to just 2 billion won. As external growth slows and profitability weakens, whether the company can improve its performance post-IPO will be a key concern for investors.

An official from the financial investment industry commented, "In the recent IPO market, scrutiny extends beyond whether the offering price is reasonable. There is also increasing sensitivity regarding who ultimately benefits from the IPO proceeds. If a minor related party is a major shareholder, the market is likely to raise questions about the source of funds, payment of gift taxes, and future succession plans."