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Summary
- Coupang to use the ticker symbol CPNG for the New York Stock Exchange (NYSE) listing.
- The Seoul-based based company to offer 120 million shares at around US$30 a share.
- It will be the largest IPO by a foreign company in the US since 2014.
South Korea’s popular e-commerce company Coupang is set to raise US$3.6 billion from an initial public offering (IPO) in New York, making it one of the largest Asian listings in the US in recent times.
Founded by 42-year-old South Korean billionaire Bom Kim in 2010, Coupang provides various services including delivery of food, entertainment, and electronic products.
The Seoul-based based company is offering 120 million shares at about US$30 a share, which would take its valuation to around US$51 billion. It will be the largest IPO by a foreign company since Alibaba’s US$25-billion debut in 2014, according to analysts.
The company plans to use the ticker symbol CPNG for the New York Stock Exchange listing.
Coupang’s competitive pricing and single-day delivery service have won the hearts of millions in the country, propelling it to become the world’s sixth-largest e-commerce company in 2019.
Pic Credit: Pixabay.
More Gains For Coupang Investors
Coupang has managed to weather the fierce competition from global e-commerce giants and a plethora of start-ups in the Asian country, with its aggressive delivery and logistics operations.
Japan’s SoftBank Group Corp is one of its biggest investors which had doubled down its investments, first with a US$1 billion funding in 2015, followed by another $2 billion in 2018.
The investments were made by SoftBank’s Vision Fund, both run by Japanese billionaire Masayoshi Son. SoftBank will buy 37 percent of Coupang’s Class A shares in the IPO, and another 20 million shares by the existing investors, the Korean company said in a filing on Monday.
Coupang founder will hold a controlling stake of 76.7 percent in the company. While each Class A share is eligible for one vote, the Class B shares retained by Mr. Bom will be qualified as 29 votes.
Dubbed South Korea’s Amazon, Coupang’s business model achieved rapid success in the country, drawing many investors early on, including BlackRock Inc. and Greenoaks Capital.
