Coupang's Value Soars 7 Times, a 'Jackpot'

US-listed IPO price set at $35

[Asia Economy Reporter Kim Cheol-hyun] Coupang has hit the 'jackpot' by listing on the New York Stock Exchange (NYSE) in the United States. The public offering price being set at a higher-than-expected $35 reflects confidence in the post-listing success.

During the preparation for this listing, Coupang's public offering price steadily increased. Initially, the prospectus suggested a range of $27 to $30. On the 9th (local time), the desired offering price was raised again to $32 to $34 per share. The company valuation was upgraded from $51 billion to $58 billion. With the final public offering price set at $35, the valuation swelled again to $63 billion (71.8 trillion KRW).

After formalizing the listing and conducting roadshows (investment presentations) locally, the company valuation rose by more than $10 billion. Considering that the last external funding round valued Coupang at about $9 billion, this represents a sevenfold increase. Industry insiders analyzed that Chairman Kim Beom-seok gained confidence through the local investment presentations.

At a $35 listing price, Coupang's company valuation is estimated to reach 72 trillion KRW, ranking third among domestic companies after Samsung Electronics and SK Hynix. Coupang plans to offer a total of 120 million shares, raising $4.2 billion through this listing. Coupang explained that the funds raised will be invested in expanding fulfillment infrastructure (services that handle sellers' delivery, packaging, and inventory management) and strengthening services. The possibility of participating in mergers and acquisitions (M&A) with other companies is also open. If Coupang, which operates the delivery app Coupang Eats, uses the investment to acquire Yogiyo, it would instantly become the second largest player in this market. German company Delivery Hero (DH) must sell Yogiyo by August this year according to the conditions set by the Korea Fair Trade Commission for acquiring Baedal Minjok.

New businesses such as the online video service (OTT) Coupang Play are also expected to see increased investment from Coupang. Coupang Play has been continuously investing in content enhancement, including live broadcasting matches of Tottenham Hotspur, a Premier League club where player Son Heung-min belongs, starting this month. An industry official said, "Coupang is expected to strengthen Coupang Play's competitiveness by securing exclusive contracts for various sports broadcasting rights."

In the existing e-commerce market, aggressive investment and employment expansion are also expected to continue. The industry anticipates that Coupang will expand and automate logistics centers to increase the Rocket Delivery service areas. There are also plans to diversify product categories by expanding the overseas direct purchase service (Rocket Direct Purchase). Coupang has announced plans to hire an additional 50,000 employees by 2025, accelerating manpower investment.