"Dawn Delivery Expands Nationwide... Logistics System Also Advanced"
Secured Site for Unyang Logistics Center... 6 Billion KRW Investment, Remodeling
Plan to Offer 5,236,000 Shares... Offering Price to Be Confirmed in Early February
Oasis Market, which is scheduled to be listed on the KOSDAQ market next month, will invest 58 billion KRW in logistics infrastructure over the next three years to establish a nationwide dawn delivery service. The company also plans to make additional investments in its logistics system to enable faster delivery and cost reduction.
According to Oasis on the 26th, the company will invest 58 billion KRW of the funds raised through its initial public offering (IPO) over the next three years to establish logistics centers nationwide. This amount accounts for more than half of the expected net proceeds from the offering. To expand its dawn delivery business, currently concentrated in Seoul, Gyeonggi, and the Chungcheong region, to a nationwide scale, Oasis plans to purchase additional sites in Gyeongsang, Chungcheong, and Jeolla regions besides the currently secured site in Unyang, Gyeongnam, and invest in facilities. Currently, Oasis handles offline store deliveries and dawn deliveries through the Seongnam Smart Integrated Logistics Center and the Uiwang Smart Fulfillment Center.
Oasis stated, "We have secured the Unyang logistics center site through our parent company, GeoSoft," adding, "Since the building on the site is aging, we will invest 6 billion KRW in remodeling it in the second half of this year." The company will also invest between 17 billion and 18 billion KRW each in the second logistics center in the Gyeongsang region and logistics centers in the Chungcheong and Jeolla regions.
Oasis also plans to advance its logistics system, which it touts as a competitive advantage over rivals. The company said, "Our logistics system optimized for Oasis aims to reduce costs through logistics efficiency and enable faster delivery," adding, "As market competition intensifies, the importance of logistics efficiency will grow, so we will continuously enhance our logistics system using the funds raised."
Oasis, which started its investor relations (IR) presentation for domestic and overseas institutional investors the day before, proposed a price range of 30,500 KRW to 39,500 KRW per share as the desired IPO price. Oasis plans to offer a total of 5,236,000 shares through the IPO. The total offering amount is estimated to be between 159.7 billion KRW and 206.8 billion KRW based on the proposed price range. The final offering price will be determined through institutional demand forecasting on February 7 and 8. The expected market capitalization is between 967.9 billion KRW and 1.2535 trillion KRW. If the listing proceeds as planned next month, Oasis will become the first e-commerce company to be listed.
The fact that Oasis is a rare profitable company in the industry played a role in its bold decision to proceed with the listing despite the cooling IPO market. Oasis recorded consecutive profits for three years from 2019 to 2021. Its sales grew from 142.3 billion KRW and operating profit of 1 billion KRW in 2019 to 356.9 billion KRW in sales and 5.7 billion KRW in operating profit in 2021. Last year, it recorded sales of 311.8 billion KRW and operating profit of 7.7 billion KRW through the third quarter.
According to Statistics Korea, the online food market size was 31.4 trillion KRW as of this month and is expected to grow to around 70 trillion KRW by 2025. A distribution industry official said, "The method of providing high-quality organic food through offline store bases and direct sourcing from producers, as well as pursuing stable profits without reckless scale expansion, will be strengths in the frozen IPO market," adding, "The success or failure of Oasis's stock market debut will influence the timing and method of listings for distribution companies in the future."
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