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Coupang LLC, South Korea’s largest e-commerce company, raised $ 4.6 billion in the largest stock offering in the United States this year, after selling IPO shares above its business target, the company said on Thursday. -market.
Coupang said in a statement that he had quoted 130 million shares sold on the IPO at $ 35 per share, above the marketing range of $ 32 to $ 34 per share, giving the Seoul-based e-commerce giant and supported by SoftBank Group Corp a market value of $ 60 billion.
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Coupang’s successful stock offering comes at a time when the U.S. IPO market is at its strongest in more than two decades and investors are flocking to buy shares in technology companies that benefited during the pandemic COVID-19.
The IPO is the largest in the United States this year, exceeding the $ 2.15 billion raised by the dating app Bumble Inc. This also marks a leap in Coupang’s valuation, which was set at $ 9 billion in a fundraising round. of funds in 2018, according to Pitchbook.
Analysts in South Korea said the strong response to Coupang’s offer was a result of its position as the market leader in the country at a time when, like many other e-commerce companies, its sales grew due to the COVID-19 pandemic.
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“Considering the high level of valuation inherent in the price, the market is making a generous assessment of how the company achieved first place in market share,” said Park Sang-joon, an analyst at Kiwoom Securities.
Coupang was the best-ranked South Korean e-commerce company in 2020, with 19.2% market share, according to Euromonitor, compared with 13.6% for Naver Corp and 12.8% for eBay Korea. It was the tenth largest e-commerce company in the world, based on retail value without sales tax.
In 2020, Coupang’s net sales jumped 91% over the previous year, to $ 11 billion. Net losses decreased to $ 567.6 million from $ 770.2 million recorded in the previous year.
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Founded in 2010 by Korean-American billionaire Bom Suk Kim, Coupang gained prominence after launching its guaranteed same-day or next-day delivery service in the East Asian country. SoftBank’s $ 100 billion Vision Fund holds 35.1% of Coupang.
Achieving a $ 60 billion valuation would be good news for Vision Fund, which is recovering from an annual loss in March. Last month, it announced record quarterly earnings.
The company’s shares will begin trading on the New York Stock Exchange on Thursday with the symbol “CPNG”.
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Goldman Sachs, Allen & Co, JPMorgan and Citigroup are the main subscribers to the offer.
(Reporting by Chibuike Oguh in New York, Joshua Franklin in Boston, Joyce Lee, Heekyong Yang in Seoul and Scott Murdoch in Hong Kong; Written by Sumeet Chatterjee; Editing by Aurora Ellis, Stephen Coates and Gerry Doyle)