Curly Applies for Preliminary Listing Review on Korea Exchange KOSPI Market

[Asia Economy Reporter Lee Seon-ae] Market Kurly's operator, Kurly, has applied for a preliminary review for listing with the Korea Exchange and has officially begun the initial public offering (IPO) process.

The Korea Exchange's KOSPI Market Headquarters announced on the 28th that it has received Kurly's application for a preliminary review for stock listing. Kurly has been preparing in advance since selecting its lead underwriter at the end of October last year. Although it initially planned to file for the preliminary review in January, the process was delayed due to extended consultations with the Korea Exchange regarding CEO Kim Seul-ah's shareholding ratio and related matters.

The Exchange recommended that since CEO Kim Seul-ah's shareholding ratio is relatively low at around 6.67%, Kurly should secure more than 20% of friendly shares. Accordingly, CEO Kim is reported to have negotiated with major investors regarding joint voting rights. She also decided not to sell her shares for three years after the listing.

As of the application date, Sequoia Capital China Growth Ⅳ, Ⅴ Holdco H, Ltd holds a 12% stake.

Market Kurly's transaction volume last year is estimated at 2 trillion KRW, a 65% increase from the previous year. This growth was driven by the full operation of the Gimpo logistics center and the expansion of the Saetbyeol delivery service in the central region. However, due to investments in infrastructure development and workforce expansion, the company recorded an operating loss of 217.7 billion KRW.

The preliminary review for listing typically takes about two months. Considering the submission of the securities registration statement, prospectus, and the demand forecast process afterward, the listing is expected to take place around July to August. Kurly's expected public offering price is known to be between 90,000 and 130,000 KRW. Based on this, the market capitalization is estimated to be between 4 trillion and 6 trillion KRW.

Meanwhile, Kurly's performance figures are ▲2018 sales of 157.1 billion KRW with an operating loss of 33.7 billion KRW ▲2019 sales of 428.9 billion KRW with an operating loss of 91 billion KRW ▲2020 sales of 953 billion KRW with an operating loss of 116.2 billion KRW.