Will the amount of protection Jesus appear… 4.8% of all shares
Coupang shares plunged 6.6% on the 16th… Sell Chairman Kim
Photo = Yonhap News
It was found that 34 million of Coupang’s employee-owned shares, the first Korean company to be directly listed on the New York Stock Exchange (NYSE), will be released on the 18th. This is 4.8% of the total number of shares (69.81 million shares).
On the 16th (local time), Coupang’s share price plunged 6.58% from the previous day to close at $47.13 per share as sales are expected to increase.
According to the listing report (S-1) filed by Coupang to the Securities and Exchange Commission (SEC), 34 million of the stock options granted to all employees (66.7 million shares as of the end of last year) will be released on the 18th.
Protection Jesus is a system in which shareholders or executives and employees who have a large amount of shares immediately after listing are prohibited from selling stock for a certain period of time. However, if Coupang’s stock price is higher than the public offering price ($35), employees who are not the major shareholders will be granted an exception to sell their stocks from the sixth day after listing.
Coupang shares closed down more than 6% in the New York Stock Exchange on the 16th (local time).
Coupang’s stock price, which started trading at $64.50, up 84% from the public offering price at the time of listing on the 11th, has since turned weak and is below $50 per share. Coupang’s market capitalization, which once exceeded 100 billion dollars, fell to 80.8 billion dollars as of the day.
Coupang’s major shareholders can also sell some of their shares after the 12th of the listing if their share price is 33% or more higher than the public offering price ($46.55), and there is a possibility that additional supplies will come to the market.
Since its inception in 2010, Coupang has differentially paid stock options to employees in the hundreds to tens of thousands of weeks depending on their status and negotiation conditions. The average strike price for stock options is very low at $1.95 per share. Even at the level of the current stock price, it can make a margin dozens of times.
It was revealed that Coupang founder Kim Bum-seok, chairman of the board of directors, sold some of his stocks immediately after listing.
Bum-seok Kim, Chairman of the Coupang Board of Directors, held a video conference with New York correspondents including the Korea Economic Daily on the 11th. Zoom capture
Chairman Kim announced on the 15th that he had sold 1.2 million shares of Class A stock. The selling price is $35 per share (public offering price), totaling $42 million (about 47.5 billion won).
Although Chairman Kim does not hold a single class of Class A common stock, he has 100% of Class B common stock with differential voting rights equal to 29 times that of ordinary shares. If you want to sell some of your holdings, you can convert Class B shares to Class A. Chairman Kim’s voting rights have slightly decreased from 76.7% to 76.2%, but it is still at the level of securing solid management stability.
On Wall Street, a positive outlook for Coupang’s share price prevails. Ray Wang, senior analyst at Constellation Research, a venture investment advisory firm, explained, “Coupang is not in a hurry to make short-term profits, but focuses on long-term growth and delivery networks.”
New York = Correspondent Jae-Gil Cho [email protected]
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