Expansion of investment and employment with funding… Kim Bum-seok 29 times super voting rights per share
Cataclysmic changes after the corona including distribution market, joint market, M&A, etc.
(Seoul = Yonhap News) Reporter Kwon Hye-jin = Distribution prices are drawing attention to Coupang, the strongest player in the domestic online shopping mall industry, who chose to go directly to the New York Stock Exchange.
It is interpreted that Coupang, who started as social commerce in 2010 and has been’rocket growth’, is aiming for a new leap in the distribution market, which is becoming more competitive after the novel coronavirus infection (Corona 19).
Coupang founder Kim Bum-seok, chairman of the board of directors, is expected to expand investment and employment based on strong management rights.
After the Corona 19 crisis, a fierce battle for survival is expected in retail prices where an alliance between online and offline companies is held.
(Seoul = Yonhap News) Coupang announced on the 12th that it has submitted a report for listing on the New York Stock Exchange (NYSE) through a public announcement by the Securities and Exchange Commission (SEC). The picture shows Jamsil headquarters. 2021.2.12 [연합뉴스 자료사진] [email protected]
◇ The reason for the US stock market, not in Korea… Kim Bum-seok voting rights are 29 times per share
Differential voting rights are the biggest reason Coupang chose to list on the New York Stock Exchange (NYSE) instead of the domestic stock market.
According to a listing application document filed by Coupang to the Securities and Exchange Commission (SEC) on the 12th, Coupang granted differential voting rights equivalent to 29 times that of Class A, which is a general stock, to Class B shares held by Chairman Kim.
Differential voting rights are a system that allows the founder or manager to operate a company stably without threats to management rights. This means that one share of Chairman Kim has voting rights equivalent to 29 shares of ordinary shares owned by others.
In the United States, unlike South Korea, several stocks with differentiated voting rights have been given to co-founders, such as Doordash, an American food delivery start-up, and Airbnb, a lodging sharing company, which recently went public (IPO) It is common to issue.
It has not been disclosed how much Kim holds Class B stocks, but since he can exercise 58% of shareholder rights even if he owns only 2% of the shares, Chairman Kim checks external M&A attempts and has stable management rights. It is expected to be able to exercise. This is interpreted as one of the reasons Coupang chose to list on the US stock market.
It is analyzed that taking into account the hot heat of the US IPO market.
The Wall Street Journal (WSJ) reported that Coupang’s enterprise 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.
On the other hand, some point out that it is difficult to meet the requirements for listing on the domestic stock market, unlike the United States, as Coupang’s continued deficit.
[쿠팡 상장 신청 자료 캡처. 재판매 및 DB 금지]
◇ Expansion of investment and employment for’Rocket Delivery’… Heating up competition for survival in the distribution industry
Coupang is expected to continue aggressive investments with funds raised through listing on the US stock market.
The expansion of the logistics center and full-filment (an integrated logistics management system that manages storage, packaging, delivery, and inventory management) to expand the’Rocket Delivery’ area are considered as major sources of funding.
Rocket delivery is evaluated as having a great’lock-in effect’ that keeps consumers using Coupang.
“A significant portion of our current funding is investment for future growth, and we expect to continue large-scale capital expenditures in the near future according to our ambitious plans for growth,” in the Coupangdo listing application document. “We want to expand the service area by constructing a distribution center and reduce delivery time and optimize the cost structure.”
Coupang explained that it will expand the overall product line of direct purchases, including major products with low market penetration such as home appliances, beauty, and clothing, and induce more sellers to register with Coupang.
Along with this, it also suggested the possibility of expanding the business into new areas, mentioning Rocket Fresh, Coupang Itz, Coupang Pay, etc., and stating that “we are always exploring new business plans to expand our range of offerings.”
In addition, he said, “We hired 25,000 people last year alone,” and suggested that it aims to hire 50,000 new people by 2025.
However, some point out that it is difficult for Coupang’s investment results to appear in the near future. The cumulative deficit so far has reached trillions of won, and the competition for survival in the distribution industry is getting fiercer.
Naver signed a partnership relationship with CJ Group last year by exchanging stocks and started to pursue full-filment business in earnest. It is an attempt to overcome logistics, which has been regarded as a weak point, through collaboration with other companies.
11st, an online shopping mall, is pursuing a strategy to grow into a global distribution platform in partnership with Amazon, the world’s largest e-commerce company. GS Retail is attempting to gain weight through a merger with GS Home Shopping.
Recently, Lee Hae-jin, Naver Global Investment Manager (GIO) and Jung Yong-jin, vice chairman of Shinsegae Group, met to find a way to solidify the two companies.
The sale of eBay Korea, which operates G-Market and Auction, was promoted, and the distribution industry faced a period of upheaval due to the Corona 19 crisis.
An online shopping mall official said, “With Corona 19 as the trigger of the accelerating perception of the distribution industry, there is no guarantee that yesterday’s No. 1 company will keep No. 1 tomorrow.” “He said.
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2021/02/14 16:06 sent