SoftBank-Supported Coupang Wants To Launch US IPO Valued At Over $50 Billion

The largest initial public offering in the United States so far this year could be launched by the South Korean e-commerce giant Coupang, which has the support of HJapanese conglomerate SoftBank Group. According ot reports, the IPO from the company will vaklue the company well over $50 billion. 

The company intends to price its offering between $27 and $30 a share, Coupang said in a regulatory filing on Monday.

The US financial market is preparing for another blockbuster years of IPOs which highlights the unprecedented investor appetite to lap up stocks of tech companies – sales and revenues of which have been very impressive during the Covid-19 pandemic.

It has been estimated that the total value of the South Korean e-commerce market was about $90.1 billion in 2020 which represented a 22.3 per cent year on year growth. That market value is expected to touch $141.8 billion in 2024, growing at a compound rate of 12 per cent, according to data and analytics company GlobalData.

If the IPO becomes a reality, it would also be a major achievement for the $100-billion Vision Fund of SoftBank which would further add on to a recovery which has helped the fund to move quickly from huge losses to recording record profits.

The ‘Rocket Delivery’ service of the company which promised delivery within 24 hours shot the Seoul-based Coupang into fame, which was founded by Harvard graduate Bom Suk Kim in 2010. The company provided good competition to family-owned retail conglomerates such as Shinsegae and Lotte.

According to data provider PitchBook, if the valuation of the company estimated within a range of $46 billion to $51 billion during its IPO would also be a huge jump in the company’s valuation in its last private funding round in 2018 when the company was accorded a value of just about $9 billion.

In addition to SoftBank being a major investors in Coupang, BlackRock Inc, venture-capital firm Sequoia Capital and billionaire investor Bill Ackman are also among the other important investors of the company.

Coupang plans to list on the New York Stock Exchange under the symbol “CPNG.” Goldman Sachs, Allen & Co, JP Morgan and Citigroup are the lead underwriters for the offering.

(Adapted from CNBC.com)



Categories: Economy & Finance, Regulations & Legal, Strategy, Sustainability

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