In the early morning of the 12th, the online stock community was followed by articles watching Coupang’s entry into the New York Stock Exchange. Coupang ended the transaction at $49.25, up 40.71% from the public offering price ($35) in the interest of Kuchin (Coupang friend) and Seo Hak ant (individual investor investing in overseas stocks). The market capitalization exceeded 100 trillion won.
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With Coupang’s successful IPO (public public offering), Coupang Chairman Kim Bum-seok and Coupang employees who hold treasury stocks gained dozens of times.
With this listing, the value of Chairman Kim’s stake has soared to about 9.7 trillion won. Chairman Kim owns 174.8 million, 2990 shares, which is 10.2% of the total listed stocks.
The value of stock options is also close to 4 trillion won. According to a listing report filed by Coupang to the US Securities and Exchange Commission (SES), Coupang employees were granted 65.7 million 3,982 shares of stock options as of December 31, last year. Stock options are the right to buy stocks at a set price. The weighted average strike price for stock options is $1.95. Coupang’s total stock options amounted to KRW 3.65 trillion based on the closing price on the 11th (local time).
If an employee who has a stock option that can buy 2,000 shares for a dollar, even excluding the acquisition amount (2.26 million won), it means a profit of 119 million won.
However, the number of stock options and the exercise price are different for each employee, so there are mixed joys and expenses. Coupang has been able to choose between cash and stock options for incentives paid based on performance. Coupang’s deficit persisted for many years, so it is known that many of its employees chose to receive cash instead of stock options.
It is pointed out that it is premature to talk about the actual price difference. This is because the stock price at the point of profit margin is more important than the current stock price. Given the stock options and the protection deposit period, there are few executives and employees who can sell stock right now.
Stock options can be exercised only after two years of employment from the date of receipt under the Commercial Act. Therefore, only stock options that were received before the previous year (2019) can be exercised realistically.
According to the list of protected deposits, the period of stock protection deposits after listing is specified for a maximum of 180 days for key management and directors, as well as shareholders and employees of 1% or more. However, as an exception, if the stock price is higher than the public offering price ($35), the employee can sell the stock after 6 days of listing. Major shareholders, excluding employees, can dispose of some of their shares after 12 days of listing, if the stock price is 33% or more higher than the public offering price (about $46.55).
With this listing, employees who actually do delivery will receive a total of 100 billion won of stock. Delivery staff’Coupang Friends’ and employees working at Coupang distribution centers nationwide are the targets. They will receive 2 million won worth of Coupang shares per person. As the base price has not been disclosed, the quantity, etc., is expected to be announced individually after the 15th, when the public offering schedule ends.
In addition, stocks given to Coupang friends and others are stocks with limited transfer conditions (RSU). If you work for one year from the day you receive the stock, you first get half, and if you work for two years, you get the other half.
Coupang plans to operate and guide a consultation call center for those eligible for stock grants starting on the 16th.
In an interview with CNBC that day, Chairman Kim said, “We are standing here because we haven’t paid attention to our long-term strategy of creating true value for our customers and shareholders.” I will provide it for you,” he said.