The public offering price of Coupang, listed on the New York Stock Exchange (NYSE), is confirmed at $35, which is higher than the hoped price.
According to Coupang’s listing application documents submitted to the US Securities and Exchange Commission, Coupang’s stake after listing is 33.1% of SoftBank Vision Fund, 16.6% of Greenox, 16.6% of Neil Meta, and 10.2% of Chairman Kim.
Among them, Chairman Kim does not have general stocks (Class A common stock), but holds 100% of Class B common stock with differential voting rights equivalent to 29 times that of general stocks, so after listing, he will take up 76.7% of the voting rights.
The combined total of Class A and Class B stocks totals over 1.7 billion 6.7 million shares.
Among them, Chairman Kim’s stake is 10.2%, so if the public offering price of 35 dollars is applied, the value of Chairman Kim’s stake is $6,993 million.
In Korean won, it is about 6,920 billion won.
This is calculated when non-circulating Class B stocks are included in the total number of shares, which is difficult to view as an accurate equity value.
Chairman Kim can convert Class B shares to Class A shares, in which case voting rights are reduced.
The Japanese SoftBank Group’s Vision Fund, led by Chairman Son Jeong-eui, has a stake worth $197.72 billion.
Compared to the total investment of 3 billion dollars in 2015 and 2018, we enjoyed an valuation margin of about 6.6 times.
Seong Jong-hwa, a researcher at Ebest Investment & Securities, said, “Considering that Vision Fund mainly invests in e-commerce or content-related platforms, it is possible to seek alliances and collaborations among businesses rather than immediately recovering the return on investment.”
(Photo = Courtesy of Coupang, Yonhap News)