Coupang is expected to raise new funds of $3.6 billion (about 4,197 trillion won) through listing on the New York Stock Exchange (NYSE). After PetroChina (2007), China Mobile (1997), and Alibaba (2014), it is the fourth largest Asian company ever. Coupang is expected to emerge as a strong opponent of Naver and Kakao in the competition for a’digital platform’ that combines shopping, content, logistics, and finance by installing a ‘4 trillion won live cartridge’.
○Kim Bum-Seok maintains management rights even after listing
According to a stock report revised by Coupang to the US Securities and Exchange Commission (SEC) on the 2nd, Coupang calculated the proposed public offering price at the level of $27-30 per share. The stock (Class A) subject to this IPO is 120 million shares. This means that it is raising up to $3.6 billion (about 4,197 trillion won).
Coupang’s total market capitalization (1.67.67.1442 shares × $30) based on $30 is expected to reach $51 billion (approximately 56,9466 billion won). Coupang unveiled a list of major shareholders with more than 5% stake after listing on the same day. Softbank Vision Fund (39.4% stake), Greenox Capital (19.8%), and Maverick Holdings (7.7%).
The largest individual shareholder is Neil Meta (19.8%), the founder and non-executive director of Greenox Capital. Founder, Bum-Seok Kim, Chairman of the Board of Directors (pictured), does not own Class A stock. He owns all Class B stocks with differential voting rights equal to 29 times that of ordinary stocks, and after listing, he will have 76.7% of the voting rights.
Class B shares held by Chairman Kim can be converted into Class A shares. Although unlikely, if Chairman Kim applies for conversion, the stakes after listing are 33.1% for Vision Fund, 16.6% for Greenox, 16.6% for Meta, and 10.2% for Chairman Kim. An official from the investment banking (IB) industry said, “Besides the Vision Fund, other venture capitalists are expected to realize profits after listing as they have had a long investment period.” Coupang specified the maximum period of stock protection deposit for key management and employees as a maximum of 180 days.
○ Expected a three-party competition structure in platform competition
The listing of Coupang means that the’platform kingdom’ that Naver and Kakao used to divide can be divided into three. Coupang started from online shopping with’fast delivery’ as a weapon, but in the sense that it intends to bind consumers to the’Coupang Kingdom’, the final goal is the same as Naver and Kakao.
The key target of ‘4 trillion won live ammunition’ can be concentrated through logistics, contents, and food delivery. Coupang has announced that it will build a full-filment (integrated logistics agency) center with approximately 870 billion won in 7 regions nationwide outside the metropolitan area. The strategy is to keep anywhere in the country within 11km of the Coupang Distribution Center.
This means that it can become a strong competitor to the smart store, Naver’s’cash cow’. An official in the distribution industry said, “Coupang, which is mainly for direct purchase, will increase the proportion of third-party sales as Amazon did.”
Competition is expected in the content market as well. From the 5th, Coupang is focusing on strengthening the online video service (OTT) by broadcasting the game of Tottenham Hotspur in the English Premier League (EPL) live through Coupang Play. It is highly likely to enter the webtoon market dominated by Naver and Kakao. Experts say that Coupang, Naver, and Kakao are bound to collide in various areas not only in Korea but also in overseas markets.
Reporter Park Donghui/Lim Geun-ho [email protected]