Korean e-commerce giant files for US IPO
Coupang, South Korea’s leading e-commerce company, has filed for an initial public offering (IPO) on the New York Stock Exchange, which would take place as early as next month.The Seoul-based company disclosed its filing on Feb. 12. Its value is expected to be around $30 billion, which would be the biggest for a foreign outfit since Alibaba’s debut in 2014.Such investment banks as Goldman Sachs and JP Morgan are included in the underwriters for the long-awaited offering.Media outlets reported Coupang’s plan for a U.S. IPO, but the online retailer has not disclosed details for that.The timing couldn’t be better for Coupang _ the U.S. IPO market is very hot thanks to the rich liquidity offered by the U.S. government aimed at fighting against the economic downturn amid COVID-19.Coupang almost doubled its sales to around $12 billion in 2020 from a year before. It failed to record a profit but managed to substantially decrease its net loss from $700 million to $475 million.Ever since its foundation in 2010, Harvard dropout Bom Kim has put revenue growth first rather than making profits. As a result, it has accumulated around $4 billion in losses.Some cast doubts on the cash-burning startup but the approach worked as it nudged past traditional powerhouses to become the leader in the e-commerce industry.In particular, Coupang introduced the so-called “Rocket Delivery” service of promising delivery within 24 hours to win the hearts and minds of end consumers.In recognition of the company’s growth potential, SoftBank’s Vision Fund invested some $3 billion.“Coupang has expanded its business horizon,” Mirae Asset Daewoo analyst Kim Myung-joo said. “Coupang may be able to become a genuine retail powerhouse beyond the online market.”이 기사를 공유합니다
Hillary Lee
(homin30@hanmail.net)