Big news! South Korea's Coupang raises IPO offering price range

It is reported that South Korean e-commerce giant Coupang announced today in a document submitted to the U.S. Securities and Exchange Commission (SEC) that it will raise the IPO (initial public offering) price range to between US$32 and US$34 per share.

According to documents previously submitted by Coupang to the SEC, the company expects to issue 120 million shares with an issue price range of US$27 to US$30 per share, raising a maximum of approximately US$3.6 billion.

But today, Coupang raised its price range to between $32 and $34 per share, raising up to approximately $4.08 billion . At the midpoint of the revised range, Coupang will raise 16% more than previously expected.

It is reported that Coupang was founded in 2010 and is an e-commerce company headquartered in Seoul, the capital of South Korea. It is also one of the few South Korean unicorns in South Korea , with revenue of US$12 billion in the 12 months ending December 31, 2020.

Coupang plans to be listed on the New York Stock Exchange with the stock code "CPNG" . Coupang has successfully completed the largest IPO of the year.

Separately, the company has 14.8 million active customers in MRQ, and in addition to its own inventory, Coupang offers hundreds of millions of SKUs from more than 200,000 merchants on its marketplace.

The company has expanded into new products, including subscription service Rocket WOW, South Korea's largest food delivery platform Coupang Eats and e-wallet Coupang Pay.

“Coupon seems to have followed Amazon’s strategy, managing to build an efficient logistics network, increase its volume, use scale to bring in users, and thus dominate the market,” said Nikki Hsu, a professor of business informatics at Yonsei University in Seoul .

He added: " Even after 11 years, Coupang is still heavily in debt, the company is still not profitable, and there will be no foreseeable future. Because e-commerce is a very low-profit industry, it is difficult to get additional sales profit. Only when Coupang becomes known to people will there be a chance to make a profit. "

Finally, Coupang is a top-level e-commerce website in South Korea with a wide range of products. Although it faces challenges, it is currently a good choice for sellers .

South Korea

IPO

Coupang