Ambulatory remote patient monitoring (aRPM) company Mezoo has proposed a valuation of up to KRW 210 billion in its initial public offering (IPO), a level significantly lower than that of comparable companies as perceived by the market. Given the relatively small proportion of shares offered to the public, this structure is interpreted as a strategy to encourage upward price momentum after listing.

Mezoo filed its securities registration statement on the 20th and has officially begun the IPO process. The company plans to start institutional demand forecasting on the 23rd of next month, and barring unforeseen variables, its market debut is expected in March. In consultation with its underwriter, Mezoo set the indicative offering price band at KRW 16,700 to KRW 21,600 per share. Through the issuance of 1.345 million new shares, the company aims to raise up to approximately KRW 29.1 billion.

Based on the upper end of the offering price band multiplied by the total number of shares expected to be outstanding after listing, Mezoo’s implied valuation stands at around KRW 210 billion. This valuation was calculated by estimating net profit of KRW 23 billion in 2028, applying an annual discount rate of 20 percent, and incorporating the average price-to-earnings ratio (PER) of 25.83 times derived from its peer group, along with an IPO discount.

An examination of the underwriter’s pricing methodology indicates that the offering price was calculated in a conservative manner across multiple dimensions. Shinhan Investment Corp.ed four KOSDAQ-listed companies—Selvas Healthcare, Mediana, Bit Computer, and InBody—as the peer group for relative PER valuation.

In the market, the company most frequently cited as comparable to Mezoo is Searstechnology, a KOSDAQ-listed wearable diagnostic monitoring company. Although there are differences in technological implementation, the target markets substantially overlap. Since its listing in 2024, Searstechnology’s share price has shown a steady upward trend, with its current market capitalization exceeding KRW 1.6 trillion. However, as the company has yet to generate profits, it was excluded from Mezoo’s final peer group.