▽ “Submit a class A common stock declaration”
▽ 1 vote per share granted
▽ Quantity and offer price range are not fixed
Coupang announced on the 12th that it has submitted a report to the US Securities and Exchange Commission (SEC) for listing of Class A common stock./Photo = News 1
Coupang announced on the 12th that it has submitted a report to the Securities and Exchange Commission (SEC) for listing of Class A common stock.
Class A common stock is entitled to one vote per share. The number of common shares to be listed and the range of offering prices have not been determined. Coupang plans to list its common stock on the New York Stock Exchange (NYSE) under the’CPNG’ ticker code.
An official from Coupang said, “In relation to IPO, securities declarations will not be submitted in Korea,” and said, “There will be no investment solicitation for domestic investors.”
Meanwhile, last month, Bloomberg predicted that Coupang’s IPO could take place in the second quarter of this year, and analyzed that the corporate value could be estimated at more than 30 billion dollars (about 32.6 trillion won).
Since Coupang started as social commerce in 2010, it has expanded its influence by introducing direct purchase and its own delivery service,’Rocket Delivery’. Sales amounted to KRW 1,9159 trillion in 2016, KRW 2,6846 trillion in 2017, KRW 4,3545 trillion in 2018, and KRW 7,153 trillion in 2019, showing an annual increase of 40-60%.
However, despite the increase in sales, Coupang recorded hundreds of billions of dollars in losses every year. In 2018, it incurred an operating loss of over 1 trillion won and recorded a deficit of 700 billion won in 2019.
Among them, the securities industry analyzed that there is a possibility that Coupang could turn into a surplus within a few years. In a report released in November last year, Samsung Securities analyzed that Coupang is expected to record 11 trillion won in sales and 215 billion won in operating loss in 2020, and that there is a possibility of a turnaround in the new year.
If Coupang is listed on Nasdaq, it is expected that domestic e-commerce companies’ IPOs will also accelerate. Examples of companies planning an IPO include 11st Street, WeMef, Coupang, and SSG.com. They are considering listing for financial investor (FI) exit (financial recovery) plan and securing investment to sustain growth.
Reporter Lee Mi-kyung, Hankyung.com [email protected]
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