IPO Microscope ① Revenue of 4 Billion Won, Net Loss of 31.4 Billion Won, RideFlux Valuation Under the Microscope

According to the Korea Exchange, RideFlux submitted an application for KOSDAQ preliminary examination on the 14th. Co-managed by Korea Investment & Securities and Woori Investment Securities, the company received an A rating from both specialized evaluation agencies designated by the exchange in May and is targeting a listing within the year through the technology exception track.

◆ Revenue Doubled, but Losses Expanded Further
According to the audit report (8th Period, 2025) submitted to the Financial Supervisory Service's electronic disclosure system, RideFlux's revenue last year was 4.004 billion won, doubling from the previous year (2.02 billion won). However, operating loss expanded to 11.9 billion won from the previous year (9 billion won), and the net loss for the period reached 31.4 billion won.

Breaking down the structure of net loss, there is a mix of illusion and substance. Of the 31.4 billion won, approximately 20 billion won is from fair value valuation loss of convertible redeemable preferred shares (RCPS), which is close to an accounting illusion where the loss appears greater as enterprise value increases just before listing. On the other hand, the expansion of operating loss is substantive. As of the end of last year, total capital was negative 77.2 billion won, representing complete capital impairment, and of the 119.3 billion won in debt, 116.2 billion won is RCPS. If listing succeeds and preferred shares convert to common shares, the capital impairment will be resolved, but the 2-3% annual return rate guaranteed to investors and conversion conditions can serve as variables in the public offering price calculation process. The company stated, "The RCPS is scheduled to be fully converted to common shares during the listing process, and the negative capital state will be immediately resolved upon conversion completion," and "Conversion discussions with existing investors are proceeding smoothly."

◆ 60% of Revenue Shrouded in Mystery as 'Company A'
Revenue quality is also a monitoring point in the examination. According to notes in the audit report, of the 40 billion won in revenue last year, 2.43 billion won—60%—came from a single customer, 'Company A.' The identity of Company A is not revealed in the disclosures. All revenue was generated domestically. The company declined to confirm the identity of Company A in response to inquiries from this news organization, stating, "It is difficult to disclose the company name due to non-disclosure agreements (NDA) with major clients." However, it noted that "the revenue reflects a comprehensive result of business cooperation with private enterprises and demonstration projects with local governments," and stated it is "expanding the proportion of repetitive and sustainable B2B revenue such as mid-mile cargo transportation, moving away from a one-off government project-centered structure."

◆ Korea's Only 'Driverless Permit'…Ammunition for 2-3 Years
The company's track record ranks among the most advanced in Korea's autonomous driving industry. Established in 2018, RideFlux showcased Korea's first fully public autonomous driving shuttle in Jeju in 2020 and received Korea's only 'temporary operation permit for driverless autonomous driving' from the Ministry of Land, Infrastructure and Transport in June 2024, leaving the driver's seat empty. From July this year, it began paid cargo transportation using autonomous trucks with Hanjin Logistics, Korea's first. The company holds 100 registered patents.

The company has raised over 75 billion won cumulatively in funding, including Series A of 16.5 billion won, Series B of 26 billion won, and Pre-IPO of 20 billion won, with Socar as a strategic investor. As of the end of last year, cash and short-term financial instruments totaled approximately 35 billion won, which represents 2-3 years worth of ammunition considering the scale of annual operating losses.

◆ Company: "Profitability Target in 2028"
Regarding earnings forecasts, the company presented 2028 as the target timeframe for achieving profitability. The core revenue model is 'AI Driver software-as-a-service (SaaS)' that supplies autonomous driving software and receives subscription fees. The company is targeting the mid-mile (inter-hub) cargo transportation market, estimated at approximately 31 trillion won in scale, and said it has "begun paid transportation with Hanjin and is in discussions with 10 or more logistics and manufacturing companies." The company also plans to launch a public driverless robo-taxi service targeting general citizens in Seoul's Sangam area within the year.

◆ Remaining Verification Points
Verification points remain. The 2025 audit report is essentially the first external audit (2024 is marked as unaudited), and Woori Investment Securities, as co-lead manager, is managing its first general-market company IPO after restart, so its competence in demand forecasting and price discovery remains unverified. Since a 4 billion won company's valuation can only be calculated based on future estimated earnings, there is a high possibility that valuation controversy will recur when the securities registration statement is submitted. Regarding the target enterprise value and public offering price range, the company stated, "It is difficult to disclose as the preliminary review is underway," and "The public offering proceeds are planned to be used for AI and data infrastructure investment and securing research and development personnel."

The exchange's preliminary review typically takes around 45 business days. Suwon Ilbo plans to continue tracking whether RideFlux will clear the examination hurdle and secure the position as Korea's 'autonomous driving IPO number one,' and will continue to report on the examination progress and securities registration statement disclosures.