Coupang headquarters in Sincheon-dong, Songpa-gu, Seoul / Photo = Yonhap News.
E-commerce company Coupang challenged the US stock market. It is listed on the New York Stock Exchange, not the expected NASDAQ. While it is expected that the corporate value of Coupang will reach a maximum of KRW 60 trillion, the impact on the domestic e-commerce market should be noted if the listing is successful.
Coupang to debut in the US stock market in March… Attention to corporate value
According to industry sources on the 15th, Coupang submitted a listing report on the New York Stock Exchange on the 12th (local time). The stock market is expected to make its debut on the stock market in March after going through the necessary procedures for listing.
Coupang founder Kim Bum-seok, Chairman of the Coupang Board of Directors, officially announced the intention to leap to the world by listing on the NASDAQ within two years.
As Coupang chose the New York Stock Exchange rather than the domestic stock market or the US NASDAQ market, domestic and overseas distribution industries are also paying attention. The New York Stock Exchange, the world’s largest stock exchange, has more stringent listing requirements than NASDAQ. This is because Nasdaq, where Google and Amazon are listed, values future growth even if profits are not large right away.
As a result, Coupang, which has recorded a long deficit, is known to promote listing on the NASDAQ, but the market is drawing attention as it chooses the New York Stock Exchange, which has the authority to delist. Weight is placed on the analysis that the strategy is based on thorough calculation and confidence to secure investment funds.
It is reported that Coupang plans to raise $1 billion (about 1.1 trillion won) through this listing. The number of common stocks to be listed and the range of offering prices have not been determined.
Amid the heat of the US IPO market, the Wall Street Journal (WSJ) reported that Coupang’s corporate value is expected to exceed $50 billion (about 55.4 trillion won). It is expected to become the IPO of the largest foreign company after the Alibaba Group in China in 2014.
SK Securities Research Center estimates that Coupang’s corporate value will reach up to 60 trillion won. SK Securities said, “This year’s domestic e-commerce market growth rate (estimated 9%) is calculated based on Coupang’s growth rate this year (compared to the previous year) and the stock price-to-sales ratio (PSR) based on estimates of sales of already listed unicorn companies. “The result” explained.
If Coupang is listed successfully… Expectation of re-evaluation of top domestic distribution companies
If Coupang is listed successfully, it is expected to affect the value of domestic transportation and distribution companies. In the market, Dongbang, the owner of Coupang(9,970 ↑29.99%), KTH(12,000 ↑29.87%), KCTC(6,150 ↑29.88%), Otek(15,200 +15.15%), Danal(5,300 +7.18%) The back is soaring. As of 11:14 a.m. on the day, Dongbang, KTH, KCTC, etc. have risen to the price limit and recorded the upper limit.
The most notable spot in the stock market is Naver(381,500 +4.09%)All. This is because if Coupang is recognized for its growth potential along with listing, Naver Shopping, the number one e-commerce business in Korea, could also be reevaluated. Reflecting expectations, Naver showed a 4% strength in the securities market on this day, surpassing 380,000 won.
Naver headquarters in Pangyo, Seongnam-si, Gyeonggi-do. Photo = courtesy of Naver
According to Kyobo Securities, the domestic e-commerce market last year recorded a scale of 161 trillion won, an increase of 19.1% from the same period last year. Online shopping has grown rapidly due to the spread of the novel coronavirus infection (Corona 19). Among them, Naver and Coupang ranked first and second with 17% and 13%, respectively. In 2016, just four years ago, the market shares of Naver and Coupang were only 7% and 4%, respectively.
Park Ji-won, a researcher at Kyobo Securities, advised to’buy’ Naver, which has an edge over Coupang in terms of number of customers and sellers (number of suppliers). As of December last year, Coupang’s number of active customers was 14.85 million, of which 32% are using Rocket Wow membership. As of last year, Naver has 20 million smart store payers and 410,000 sellers, more than twice that of Coupang.
Researcher Park said, “Although the business strategy is different from Coupang, we expect that the value of Naver Shopping, which has a competitive advantage in terms of rapid transaction growth, high seller and user response, and strengthening the value chain through partnership, will be re-evaluated.”
Some securities market estimates that Naver’s corporate value can reach up to 80 trillion won compared to Coupang.
Hyundai Motor Securities raised the target price of Naver to KRW 500,000 based on the target market cap. Kim Hyun-yong, a researcher at this securities company, said, “The Naver e-commerce business already has a solid ecosystem with its strengths, such as high point accumulation rate, strengthening connection with its own content such as webtoon and music, and loans to sellers.” “No.”
Seung-woo Yoo, a researcher at SK Securities, is CJ Logistics, the No. 1 parcel delivery company in Korea,(173,500 0.00%)Was told to pay attention. This is because it is responding to Coupang’s growth through collaboration with Naver, so it can be given a differentiated value compared to other courier companies.
Chae Seon-hee, Hankyung.com reporter [email protected]