South Korean e-commerce giant,Coupang, files for an initial public offering on the New York Stock Exchange
According to the IPO documents submitted to the U.S. Securities and Exchange Commission, the Seoul-based company has stated that it will sell Class A common stocks on the New York market. However, details of the offering are yet to be disclosed.
If the e-commerce giant is able to successfully list its stocks in the United States, it would mark the biggest IPO for a foreign company since the debut of Alibaba in 2014, with the Chinese entity valued at about $168 billion at that time.
Korea's SK Investment & Securities has predicted that Coupang's value would be higher than $50 billion considering its rapid growth, with HMC Investment & Securities estimating its worth to be around $35 billion.
In the IPO plan, the company said its 2020 revenue almost doubled to $12 billion from a year before, with net loss decreasing from $699 million to $475 million during the period.
Analysts have stated that Coupangconsidered the NYSE instead of the Korean bourse to strengthen the company’s leaders' grip on the online retailer.
"Coupang appears to go for the New York Stock Exchange because it can take advantage of a multi-class share structure, which is not possible in Korea," HMC Investment & Securities analyst Kim Hyun-yong told UPI News Korea.“Coupang's listing is expected to take place in March,” he said.
According to the IPO plan, the founder of Coupang, Bom Kim, will have a class of stock with 29 votes per share with other investors in the IPO getting one vote per share.
"Even if CEO Bom Kim holds just 2 percent of Coupang shares after the IPO, he will be able to control up to 58 percent of the voting rights at the shareholders' meeting," said Hana Financial Investment analyst, Park Jong-dae.
The Harvard dropout Bom Kim established Coupang in 2010 and has chalked up an ultra-fast growth of the company, a strategy that has led to losses in the region of $4 billion. However, investors have recognized its growth potential as demonstrated by SoftBank's Vision Fund, which channeled around $3 billion into the cash-burning start-up.
For more IPO news from different parts of the world, please visit - https://whiteoakcapital.asia.
Company Name: White Oak Capital (Asia)
Contact Person: Mr Craig Stevens
Email: Send Email
Phone: +852 3001 6191
Address:36 FL Shun Tak Centre West Tower 168-200 Connaught Road, Central
City: Sheung Wan