Coupang announced on the 11th (local time) that the public offering price was set at $35 (about 40,000 won) ahead of listing on the New York Stock Exchange (NYSE). This is higher than the $32-34 originally offered.
With the public offering price set at $35, Coupang will be able to raise capital close to 5 trillion won through this IPO. In addition, the enterprise value is expected to be $63 billion (about 71 trillion won). This is seven times higher than the recognized corporate value ($9 billion) when Coupang finally received external investment.
This is less than SK Hynix (99.76 trillion won), which is the second place, and larger than LG Chem (66,2862 billion won), which is the third place when compared to the domestic KOSPI based on the closing price on the 11th.
130 million shares (Class A common stock) subject to public offering will be traded on NYSE from the 11th, and the stock code is CPNG. The competition is scheduled to end on the 15th according to the general termination procedure.
When Coupang goes public, it will become the largest IPO among foreign non-US companies since Alibaba Group in China in 2014.
According to a report filed by Coupang to the US Securities and Exchange Commission (SEC), last year’s total sales increased 91% year-on-year to $1.97 billion (about 13.25 trillion won). The net loss is about $474.9 million (about 530 billion won), down 32.04% from the previous year ($698.8 million).
Coupang plans to invest in infrastructure related to full-filment, such as expansion of distribution centers, with the funds secured through this listing. Coupang also revealed plans to build full-filment centers in seven locations within a few years. With the expansion of the logistics center, Coupang can not only deliver more products in a short time, but also expand the service responsible for fast delivery of open markets.
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In the report, Bum-seok Kim, founder of Coupang and Chairman of the Board of Directors, emphasized that “Coupang will enable customers to have everything,” and that same-day delivery will be strengthened. It is going to speed up delivery so that you can receive the items you need the fastest.
It also revealed a plan to hire 50,000 additional people by 2025. Coupang is also actively hiring not only developers, but also distribution and logistics.