Coupang IPO participation possible in Korea… 5 questions surrounding listing

Coupang decided to invest in new funds raised through listing on the New York Stock Exchange (NYSE) to build logistics infrastructure in Korea. Last Sunday (14th), a Coupang driver is working on a parcel delivery in Jongno-gu, Seoul. yunhap news

The announcement that Coupang will be listed on the US stock market is shaking the domestic market as well. Its rival, Naver, surged in the analysis that it was undervalued, and some’coupang theme stocks’ went directly to the upper limit. Interest in Coupang, which has never recorded a surplus since its inception, has shifted from the distribution market to the stock market. We have summarized the issues investors are curious about into five questions and answers.

① How domestic investors will participate in IPO

Articles by individual investors saying’I want to participate in the coupang public offering’ are sweeping the internet stock bulletin board. However, it is virtually impossible for domestic individuals to acquire Coupang shares at a public offering price. This is because Korea and the US have different IPO methods. In the United States, the listing organizer freely sells the public offering to the institution. It is different from Korea, where individual shares are fixed. For some stocks, an individual can acquire public offerings by signing a contract with an asset management company by a US securities company, but if the Coupang IPO is successful, it will be difficult.

② Why go to NYSE instead of NASDAQ?

Coupang initially announced plans to go to the NASDAQ. Coupang’s trip to Nasdaq seemed natural. This is because Nasdaq is the market where the world’s largest technology stocks are gathered. Nasdaq is advantageous in maintaining listing qualifications, as well as fees for listing requirements, additional listings, and stock dividends. But at the end, I turned. I chose the New York Stock Exchange (NYSE).

Experts have come up with the interpretation that’Coupang has a strong confidence in the turnaround.’ NYSE is a market where companies that consistently make profits, such as Bugshire Hathaway and General Electric (GE), are listed. Park Eun-kyung, a researcher at Samsung Securities, interpreted it as “a strategy to dispel such an image by entering the New York Stock Market, a world-class stock market, as there were many doubts about the profitability and financial situation.”

Securities market forecasts that Coupang may record its first operating surplus this year. Samsung Securities and SK Securities predicted that Coupang is likely to succeed in turning profits this year by introducing various cost-saving services such as a rocket alliance.

③ Coupang-related stock, beneficiary or theme stock

In the domestic stock market on the 15th, related companies such as Coupang’s partners were classified as’Coupang-related stocks’ and soared. KTH, which supplies contents to Coupang’s OTT (online video service)’Coupang Play’, ended the transaction at 12,000 won, a 29.87% rise. Dongbang, which was in charge of Coupang’s logistics and transportation business until December next year, also recorded an upper limit.

Experts’ evaluation of these’coupang theme liquors’ is weak. This is because it is unlikely that suppliers will directly benefit from Coupang’s listing. Park Eun-kyung, a researcher at Samsung Securities, pointed out, “If you make aggressive investments with the funds obtained from the listing of Coupang, your business partners may also be affected, but the impact on the performance of this year and next year will be minimal.”

Some stocks are more likely to benefit. ESR Kendall Squares, nicknamed’Coupang Ritz (RIETs, real estate investment company)’ is a representative example. ESR Kendall Squares is a REIT that owns and operates 30% of Coupang’s distribution centers. Coupang occupies 49% of the rental area. On this day, ESR Kendall Squares ended the transaction at 6040 won, up 2.90%.

④ Investment in Coupang’alternative stock’?

You can also look to your competitors. This is because if the pie in the entire e-commerce market grows with the listing of Coupang, competitors that have similar businesses such as Naver can receive a higher evaluation. Hyun-yong Kim, a researcher at Hyundai Motor Securities, said, “With the listing of Coupang, Naver’s shopping business will also be reevaluated.” If we apply a 40% discount to Coupang’s corporate value of 34 trillion won, considering Naver’s logistics capability, which is less than Coupang, the value of Naver shopping is 20 The trillion won will pass.” Naver finished the deal at 385,000 won, a 5.18% increase on the day. It’s the best price ever.

⑤ Can I invest in Coupang after listing?

What is important for domestic investors who can invest in Coupang after listing is the long-term earnings outlook. If Coupang proceeds with an IPO with a market capitalization lower than its potential corporate value and continues to grow after listing, the stock price could rise for a long time. Conversely, if the listing is made at a high price, the stock price immediately after listing may be sluggish. Myung-ju Kim, a researcher at Mirae Asset Daewoo, said, “The market cap is key right after listing.” Coupang can be listed for a maximum of 55 trillion won, which is difficult to say that it is at a price that is 3 times the same as Amazon’s stock price sales ratio (PSR) before the turnaround. He explained.

At the very beginning of the listing, some advise to refrain from investing. This is because the US market does not have an upper and lower limit system. In the early days of listing, when a potential consensus on corporate value has not been reached, the daily stock price fluctuations can be large.

Reporter Jeon Bumjin/Choi Yerin [email protected]