A large amount of stocks are expected to be released on the 18th (local time), a week after Coupang, an e-commerce company made its successful debut on the New York Stock Exchange (NYSE). This is because the protection deposit for 2% of the stocks owned by employees is released. Coupang announced that from the opening of the New York Stock Exchange (NYSE) on the same day, restrictions on the sale of approximately 34 million Class A common stocks held by its employees will be lifted. Photo = Courtesy of Coupang
On the 18th (local time), a week after Coupang, an e-commerce company, made its successful debut on the New York Stock Exchange (NYSE), the company’s stocks are expected to be released on the market. This is because the protection deposit for employee-owned stocks, which accounts for 2% of all listed stocks, is released.
Coupang announced that from the opening of the New York Stock Exchange (NYSE) on the same day, restrictions on the sale of approximately 34 million Class A common stocks held by its employees will be lifted. The amount of the sale restrictions lifted corresponds to 2% of the total number of shares (1,715.14 million shares).
Coupang said, “As the conditions for lifting some restrictions on early sale of about 34 million shares held by the employee group are met, the stock will be tradeable on the open market.” I chose to prioritize them,” he explained.
Coupang added that “measures in accordance with the provisions of a specific sale restriction agreement with executives and affiliates,” and added that “all remaining shares subject to the sale restriction agreement will continue to be subject to the sale restriction period.”
A large amount of stocks are expected to be released on the 18th (local time), a week after Coupang, an e-commerce company made its successful debut on the New York Stock Exchange (NYSE). This is because the protection deposit for 2% of the stocks owned by employees is released. Coupang announced that from the opening of the New York Stock Exchange (NYSE) on the same day, restrictions on the sale of approximately 34 million Class A common stocks held by its employees will be lifted. Photo = Courtesy of Coupang
The amount released this time is part of the stock options (66.7 million shares as of the end of last year) granted to all employees. Protected deposit is a system that restricts transactions of existing shareholders for a certain period immediately after listing, and is usually maintained for 6 months after IPO.
However, if the sale limit is lifted on this day, if the stock price is higher than the public offering price ($35), the employee who is not the major shareholder may be granted an exception to sell the stock held on the 6th day after listing Receive. Coupang’s major shareholders can also dispose of some of their shares from 12 days after listing if the stock price is 33% or more higher than the public offering price.
Coupang’s share price has recently declined due to concerns over volume exits. The stock price of Coupang began trading at $63.50, up 84% from the public offering price ($35) on the first day of listing on the 11th. At one time, it soared to $69, but then fell below $50 and fell to $43.29 (closed on the 17th).
A large amount of stocks are expected to be released on the 18th (local time), a week after Coupang, an e-commerce company made its successful debut on the New York Stock Exchange (NYSE). This is because the protection deposit for 2% of the stocks owned by employees is released. Coupang announced that from the opening of the New York Stock Exchange (NYSE) on the same day, restrictions on the sale of approximately 34 million Class A common stocks held by its employees will be lifted. Photo = AP
Earlier, Coupang founder Kim Bum-seok, chairman of Coupang’s board of directors, sold 1.2 million treasury stocks. According to a disclosure by the US Securities and Exchange Commission, Chairman Kim sold 1.2 million shares on the 15th. The average selling price is $35 per share, and the total sales amount is equivalent to $42 million (about 47.5 billion won).
At the time of listing, Chairman Kim owned Class B, which had 29 times more voting rights than Class A common stock, and had a 10.2% stake. For this sale, Chairman Kim converted 1.2 million Class B shares into circulating Class A common shares. Voting rights have decreased from 76.7% to 76.2%.
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