Expected to expand investment in transportation and logistics… Seeking new business
Interested in acquiring the 2nd place delivery app’Yogiyo
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(Seoul = Yonhap News) Reporter Kwon Hye-jin = As Coupang unveiled its plan to raise up to 4 trillion won through listing on the US stock market, attention is being drawn on where to use this fund.
It is expected that Korea will focus on strengthening Coupang’s market dominance by checking other online’distribution dinosaurs’ such as Naver Shopping in Korea.
According to the revised listing application filed with the Securities and Exchange Commission (SEC) on the 1st (local time), Coupang plans to sell 120 million shares of shares for $27-30 per share through IPO.
The plan is to raise funds of up to $3.6 billion (approximately 3,9852 billion won) based on the highest bid price.
Considering that Coupang’s cumulative deficit reached $4.1 billion as of the end of last year, if the IPO is carried out as desired, liquidity will suffer.
It has previously attracted $3 billion of investment from SoftBank, but it is reported that the deficit has continued and this funding has been almost exhausted.
Coupang is expected to expand investments in transportation and logistics, which are considered to be its greatest strengths, with funds secured through listing.
“As part of the expansion plan, we will invest $870 million over the next few years to set up seven regional full-filment centers to meet the expected demands of our future customers,” Coupang said.
In order to maintain and expand services such as rocket delivery, it is essential to expand full-filment, from storing seller products to packing, shipping, and delivering in batches according to orders.
Coupang also predicts that future spending on infrastructure and labor-related costs will amount to billions of dollars over the next few years.
Coupang also aims to hire 50,000 new employees by 2025. It is also planning to expand hiring of engineers and data scientists.
Coupang said, “(Technology investor) brings the development of products and services that will lead to innovation in the customer experience, while supporting the expansion into new business plans.”
He also introduced that “we are always exploring new business plans.”
In this regard, the possibility of Coupang jumping into Yogiyo, the second-largest delivery app for sale in the distribution industry, continues to be discussed.
The acquisition of Coupangi Yogiyo, which runs Coupangitsu, a delivery app latecomer, will expand the delivery service area, mainly in the metropolitan area, and raise the market share to the extent that it forms a Yanggang configuration with the nation of delivery, currently the No. 1 delivery app. .
Yogiyo’s ransom is estimated at 2 trillion won. It is observed that Coupang, who is expected to secure enough’live bullets’ through listing, will have no difficulty in acquiring Yogiyo if he decides.
However, Coupang said, “There are no specific acquisitions or investment plans at this time.”
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2021/03/02 14:52 sent