Business

South Korea’s Kubang raised $ 4.2 billion in its New York listing, the largest since 2014

Seoul: South Korean e-commerce giant Coupang raised $ 4.2 billion in its initial public offering, making it the largest listing in the US this year so far.

The Seoul-based company, supported by Japan’s SoftBank, has rocked the retail sector in South Korea since its launch 11 years ago with a platform that guarantees same-day delivery, helping to transform it into the online market leader in the country. Technology savvy.

In a file it filed with the US Securities and Exchange Commission yesterday, Coupang said it sold 120 million shares in its initial public offering at $ 35 apiece – higher than the initial target range of $ 27 to $ 30 – giving it a market value of $ 35 per lot. $ 60 billion USD.

It will make its debut on the New York Stock Exchange today under the symbol CPNG.

The flagship listing – the largest in New York since Alibaba’s record US $ 25 billion bid in 2014 – would make the billionaire overnight to founder Kim Bom-suk, with the 42-year-old CEO owning 10% about $ 6 billion USD.

And according to Bloomberg News, SoftBank, Coupang’s largest shareholder, will also make $ 16 billion USD.

The Japanese giant invested $ 1 billion in the company in 2015, in a deal worth $ 5 billion.

This was followed three years later by another $ 2 billion in financing from the Vision Fund at SoftBank, which said the company was worth $ 9 billion, Bloomberg said.

With so many flocking to shop online during the coronavirus pandemic, the e-commerce giant’s net revenue jumped 91% year-on-year to $ 11.9 billion in 2020.

The depository said that its total net losses for the fiscal years from 2018 to 2020 amounted to more than $ 2.2 billion, adding, “We may not be able to achieve sufficient revenues to achieve profitability or maintain it in future periods.”

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