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Coupang, a representative online shopping mall in Korea, is listed on the New York Stock Exchange. In 2011, which was the first anniversary of the birth of the joint ticket buying platform ‘Social Commerce’, Coupang Chairman Kim Bum-seok, Chairman of the Board, realized exactly 10 years after announcing his plan to “list on the NASDAQ in two years and take a leap into the world.” Coupang aims to develop new markets, such as travel, as well as the existing domestic retail market, using the listing as a foothold, while expanding its overseas step to become the level of Amazon, the current number one trading company. world.
On the 14th, Coupang announced on the 12th (local time) that it had filed a report for listing on the New York Stock Exchange (NYSE) with the United States Securities and Exchange Commission (SEC).
As it was originally known, they chose to go public on the NYSE instead of the NASDAQ.
A Coupang official explained that “for the Class A common stock listing, we file a report in accordance with the S-1 form.” The code for the New York Stock Market is ‘CPNG’.
Coupang will appear on the list after Coupang LLC (Coupang LLC), a US corporation, becomes Coupang INC. Coupang Inc. owns 100% of Coupang Co., Ltd., a Korean subsidiary. The number of common shares to be traded and the range of offering prices have not been determined. The IPO is expected to take place in March after an investor briefing. The expected business value is up to $ 50 billion (about 55 trillion won), more than four times the amount that can be purchased at E-Mart, Lotte Shopping, and CJ Logistics, leading national logistics and distribution companies.
Coupang set a goal of raising a total of $ 1 billion (about 1,107 billion won) through this list. With this, Coupang stated that it would target the Korean distribution, grocery, food delivery and travel markets.
First, in the fields of distribution (rocket delivery), food (fresh rocket) and food delivery (coupang-itz), which are already in business, it is expected to consolidate its position as number one in Korea through of more drastic investments.
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4.5 times the three main national distribution companies
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“If you lose 1 trillion won a year like Coupang and apply to do business, we can do it at any time.”
When asked if Coupang’s challenge was threatening, a senior executive at a large national distribution company devalued Coupang’s “deficit” business model and said the following.
However, the market judgment was different. On the 12th (local time), the Wall Street Journal of the United States (WSJ) announced that Coupang was officially promoting a public offering on the New York Stock Exchange (NYSE), saying: “Coupang is the largest foreign company since Alibaba Group’s debut blockbuster in 2014. He said, “In the case of Coupang, a valuation of more than 50 billion dollars (about 55.4 trillion won) is expected.” At the time of the 2014 IPO, Alibaba was appraised for an enterprise value of $ 168 billion (about 186 trillion won). The British Financial Times (FT) also reported that Coupang expects to assess the market value of more than $ 50 billion. Through NYSE listing. If the corporate value of 55 trillion won is recognized in the market, Coupang’s market capitalization will be the fifth in Korea after Naver (60 trillion 202.5 billion won) based on the KOSPI closing price on the 10th. This is the s uma of the market capitalizations of E-Mart (4.8 trillion won), Lotte Shopping (3.4 trillion won) and CJ Logistics (3.9 trillion won), which are leading domestic companies in the same business distribution and logistics. 4.5 times.
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Even the domestic stock markets believe that it is not unreasonable for Coupang to be recognized for his corporate worth of more than 30 trillion won. In a report, Mirae Asset Daewoo researcher Kim Myung-ju said: “If Coupang’s corporate value reaches $ 30 billion (32 trillion won), there is no valuation burden when considering the increase continued in income from commissions, the drop in package delivery prices due to the increase in cargo volume, and the expansion of market share in the retail market ”. I analyzed. In particular, it has been confirmed that Coupang already changed the cash flow from its business activities to positive (net inflow) last year before listing. This year, Coupang’s first year of listing, which posted a deficit of more than 1 trillion won just three years ago, raises the possibility of removing its label as a 10,000-year deficit company. According to Coupang’s corporate disclosure report filed with the US Securities and Exchange Commission (SEC), Coupang’s sales last year reached $ 1.97 billion (approximately KRW 13.25 trillion), a 91% more than the previous year, and the scale of the deficit was $ 4,749,000 (approx. 525.7 billion won), about 150 billion won less during the same period. In particular, cash flow from operating activities was $ 31.6 million (approximately 3.338 billion won), an increase of more than 600 billion won from the previous year, turning positive after 7 years.
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Coupang’s challenge to the US equity market is noted to be significant. It is an evaluation that the evaluation of the value and business model of Korean e-commerce is so great. A market official said: “The US capital market assessment of Coupang’s corporate value is derived from the assessment of the Korean e-commerce business model.” In particular, by turning cash flows from operating activities into a surplus last year, it is now possible to use the live ammunition that will come through this list for aggressive investment rather than improving financial scarcity. Why is Coupang’s market value being assessed? Coupang’s business model is a difficult structure for existing distribution giants to follow. Visibly, Coupang built a ‘logistics warehouse’ infrastructure through large-scale investments and built a ‘barrier to entry’. However, experts in the distribution industry find a more fundamental difference in terms of “customer satisfaction.” While other retailers focused on “how to make money,” Coupang addressed “how to get rid of customer complaints.” In Coupang’s chairman of the board of directors Kim Bum-seok’s letter, which is included in the corporate disclosure report, his management philosophy is.
President Kim noted that “the existing purchasing method had to select only a few ‘quality’, ‘price’ and ‘various products’.” He said: “Our goal is to go beyond the limits of previous purchasing methods so that customers can say, ‘How would I have lived without a coupang?’
In fact, Coupang’s challenge led to drastic innovation in distribution networks. First, it built its own distribution network to go beyond the limitations of the existing distribution network. The result was “same day delivery” for rocket delivery orders. At the end of last year, Coupang’s distribution centers numbered around 170 in 30 cities. 70% of Korea’s population lives within 11 km of the Coupang distribution center.
Coupang’s innovation continued. Introduced ‘Sunrise Delivery’ for double income couples and ‘Rocket Fresh’ for fresh food delivery. The biggest complaint from consumers about online shopping was the cumbersome “return” process. Coupang solved this problem with a ‘Do not ask for return’ service that allows you to return the product simply by placing it on the door.
[김기정 기자 / 김태성 기자 / 신유경 기자]