Upstage, a leading South Korean generative artificial intelligence (AI) startup, is strategically advancing its initial public offering (IPO) with an ambitious target valuation exceeding ₩1 trillion. The company aims to become the first publicly listed generative AI firm in South Korea.

To achieve this, Upstage has initiated the process of selecting lead underwriters by dispatching Requests for Proposals (RFPs) to 5-6 major domestic securities firms, including Korea Investment & Securities, NH Investment & Securities, and Mirae Asset Securities. The selection of a lead underwriter is expected to be finalized by the end of the current year (2025), with the submission of the preliminary listing review application and subsequent market entry projected for the following year (2026).

Upstage's post-IPO market capitalization is anticipated to reach at least ₩2 to 3 trillion. This ambitious valuation is supported by positive market sentiment towards AI companies and the recent successful listing of AI firm Nota, which achieved a ₩1 trillion market capitalization shortly after its IPO. While Upstage was valued at approximately ₩790 billion in its latest funding round in August, the investment community expresses confidence in the higher target valuation given the current market conditions and strong investor interest in the AI sector.

In parallel with its IPO preparations, Upstage is also considering a significant pre-IPO funding round, specifically targeting overseas institutional investors. This pre-IPO is intended to enhance the company's valuation before listing and to further expand its global generative AI business operations. The target amount for this pre-IPO is approximately $300 million (equivalent to about ₩430 billion), which would more than double the total capital of ₩200 billion previously raised by the company. Upstage is reportedly seeking a valuation of around$900 million (approximately ₩1.3 trillion) in this pre-IPO round. Achieving this target valuation in the pre-IPO is crucial for meeting market expectations upon its eventual listing.

Founded in 2020, Upstage is recognized for its frontier-class large language model (LLM), 'Solar Pro2,' which boasts 31 billion parameters. This model was independently recognized by 'Artificial Analysis' in July as one of the top 10 frontier models among Korean LLMs. The company's major investors include SBVA, Company K Partners, Korea Development Bank, Mirae Asset Venture Investment, Premier Partners, Intervest, and SK Networks. An Upstage official confirmed the ongoing underwriter selection process for the IPO but stated that specific timelines and details remain subject to finalization.