IPO Microscope ① Revenue of 4 Billion Won, Net Loss of 31.4 Billion Won: RideFlux's Valuation Put to the Test

According to the Korea Exchange, RideFlux submitted its KOSDAQ preliminary examination application on the 14th. Korean Investment & Securities and Woori Investment Securities are jointly underwriting the offering, and the company aims for listing within the year on the technology track, having received an A rating from both of the exchange-designated specialized assessment institutions in May.

◆ Revenue Doubles, Losses Grow Even Larger
According to the audit report (8th Period, 2025) submitted to the Financial Supervisory Service's electronic disclosure system, RideFlux's revenue last year reached 4.04 billion won, doubling from the previous year's 2.02 billion won. However, operating losses expanded to 11.9 billion won from the previous year's 9 billion won, and the net loss for the period reached 31.4 billion won.

Breaking down the structure of net loss reveals a mix of optical illusion and substance. Of the 31.4 billion won, approximately 20 billion won is fair value valuation loss on redeemable convertible preferred shares (RCPS), which resembles an accounting optical illusion where company value increases make losses appear larger just before listing. On the other hand, the expansion of operating losses is a matter of substance. As of the end of last year, total capital stood at minus 77.2 billion won in a state of complete capital depletion, with 116.2 billion won of the 119.3 billion won in debt being RCPS. While the structure ensures that capital depletion will be resolved if the company successfully lists and preferred shares are converted to common shares, the annual 2-3% rate of return guaranteed to investors and conversion conditions may serve as variables in the process of calculating the offering price. The company stated: "The RCPS is scheduled to be fully converted to common shares during the listing process, and once conversion is completed, the negative capital total state will be immediately resolved," adding "ongoing discussions with existing investors regarding conversion are proceeding smoothly."

◆ 60% of Revenue Shrouded in Mystery 'Company A'
The quality of revenue is also a point of focus in the screening process. According to notes in the audit report, of last year's 40 billion won in revenue, 2.43 billion won—or 60%—came from a single customer identified as "Company A." The identity of Company A is not disclosed in the filings. All revenue was generated domestically. When questioned by this publication, the company stated: "It is difficult to disclose the company name due to non-disclosure agreements (NDAs) with major customers," and refused to confirm the identity of Company A. However, the company noted: "The revenue reflects a comprehensive combination of business cooperation with private enterprises and local government demonstration projects," and added: "We are expanding the proportion of repetitive and continuous B2B revenue such as middle-mile freight transportation, moving away from a structure centered on one-time government projects."

◆ 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. Founded in 2018, RideFlux unveiled Korea's first fully open autonomous shuttle in Jeju in 2020, and in June 2024, became the only company in Korea to receive the "temporary operation permit for driverless autonomous driving" from the Ministry of Land, Infrastructure and Transport. From July this year, it began commercial autonomous truck freight transportation with Hanjin Logistics, Korea's first. The company holds 100 registered patents.

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

◆ Company States "Profitability Turnaround in 2028"
Regarding earnings prospects, the company set 2028 as the target timeframe for profitability turnaround. The core revenue model is "AI Driver Software-as-a-Service (SaaS)," supplying autonomous driving software and collecting subscription fees. In the middle-mile freight transportation market, estimated at approximately 31 trillion won, the company is "in discussions with 10 or more logistics and manufacturing companies" following the start of commercial transportation with Hanjin. The company also plans to launch a public driverless robo-taxi service starting this year in Sangam, Seoul, targeting general citizens.

◆ Remaining Verification Points
There are still points to verify. Since the 2025 audit report is essentially the first external audit (2024 was marked as unaudited), and Woori Investment Securities as co-underwriter is overseeing its first general company IPO since its restart, its demand forecasting and price discovery capabilities have not been tested. Since a 40 billion won company's valuation must necessarily be calculated based on future estimated earnings, there is a significant possibility of valuation disputes resurfacing at the stage of securities registration statement filing. Regarding target company valuation and offering price range, the company stated: "It is difficult to disclose as preliminary examination is underway," and "the offering proceeds are planned to be used for AI and data infrastructure investment and R&D personnel acquisition."

The exchange's preliminary examination typically takes around 45 business days. Whether RideFlux clears the examination hurdle and secures the title of "autonomous driving's first listed company," News S plans to continue tracking the examination progress and securities registration statement disclosures.