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Summary
- The pandemic-induced boom in the e-commerce industry has opened new opportunities for the players.
- E-commerce companies like Coupang have made successful debut on the stock exchanges.
- Many other players are planning to go public in order to raise capital for enhancing their offerings and business expansion.
The year 2020 emerged as a redefining year for the e-commerce industry as well as consumers. The e-commerce industry saw an unprecedented uptick in demand during the challenging COVID-19 period.
Shift in consumer preference for online shopping began during lockdown when most physical stores were closed due to the mandatory shutdown. At that time, e-commerce platforms were the only choice for customers while avoiding all the possible physical contacts to curb the coronavirus transmission.
The pandemic has triggered changes in online shopping behaviours that are expected to have lasting effects.
Do watch: The global IPO market amid COVID-19 and how did the Australian IPO market flare during the pandemic?
Global e-commerce growth has been rapid and impressive. Given this boom, many players in the space are eyeing to raise capital to tap the emerging opportunities. An initial public offering (IPO) gives the business an opportunity to raise capital that can be used growth and expansion.
Image source: © Stavklem Megapixl.co
On that note, let us discuss one recently rolled out IPO and one upcoming IPO from the e-commerce space.
SoftBank-Backed Coupang Makes Blockbuster Debut on the NYSE
South Korean e-commerce giant Coupang is backed by SoftBank Group Corp. On 11 March 2021, the company debuted on the New York Stock Exchange (NYSE). It got listed under the ticker symbol CPNG.
The stock began trading at USD 63.50 a piece, resulting in a market capitalisation of USD 102.2 billion. The share price soared 81% on the first day of trading.
The company, which was founded in 2010, follows the same-day or next-day delivery service, thus the business is often compared to Alibaba or Amazon. The e-commerce platform offers millions of items, including fresh groceries, at a lower price every day. The products are delivered in eco-bags or one can call them as boxless or zero-packaging. Its rocket delivery service ensures that the purchased item is delivered at the fastest speed.
Financial Position in 2020
- Total revenue stood at USD 12.0 billion, up 90.8% from 2019, or 93.1% from 2019 on a constant currency basis.
- Gross Profit was USD 2.0 billion, representing growth of 92.3% when compared with 2019 figures.
- Operating loss in 2020 was USD 0.5 billion, down from USD 0.6 billion in the previous year.
- Cash generated through operating activities increased to USD 0.3 billion.
Also Read: Three online service provider stocks to watch in 2021
Deliveroo Intends To Go Public Soon
Deliveroo, a London-based online food delivery company, has unveiled its intentions of going public on the London Stock Exchange. A date for IPO is not officially announced as of now, but it is expected soon.
Image Source: © Frui | Megapixl.com
Reportedly, the joint global coordinators are Goldman Sachs International and J.P. Morgan Securities plc.
The company decided to go public after experiencing an increase in business during the pandemic period, as the lockdown restrictions boosted the demand for delivery and takeaway services.
To know more, read here: Amazon-backed Deliveroo set for London IPO with Dual-Class Structure
