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Coupang IPO Looks Like A Blockbuster For Korean E-Commerce Company

Investor interest is high for the initial public offering of Coupang (CPNG), the largest e-commerce company in South Korea and a rival to Amazon (AMZN) and Alibaba (BABA). The Coupang IPO will price late Wednesday and trade Thursday.




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The Coupang IPO is expected to raise $4 billion and give the company a market valuation near $50 billion. That would make it the largest IPO of a foreign company on U.S. markets since Alibaba (BABA). Also, that would surpass the recent IPO of Airbnb (ABNB), which was valued at $47 billion.

Coupang is offering 120 million shares at a price range of $32 to $34. The company had previously filed to offer the shares at a range of $27 to $30.

The Coupang IPO will trade on the New York Stock Exchange under the ticker CPNG.

Korea is widely considered one of the fastest growing e-commerce markets outside of China. In addition, total e-commerce spending in that country was $128 billion in 2019, which is expected to grow to $206 billion by 2024, according to the Coupang IPO filing.

Coupang IPO: An A-List Of Investors

Coupang has an A-list group of investors. This includes Japan’s Softbank Group, BlackRock, venture capital firm Sequoia Capital and billionaire investor Bill Ackman.

Coupang reported revenue of $11.9 billion in 2020, up 72% from the year-ago period. It reported a net loss of $474.6 million. However, that’s an improvement from a loss of $699 million in the prior year.

It had approximately 14.8 million active customers at the end of December. Also, it has about 50,000 employees. The lead underwriters of the Coupang IPO are Goldman Sachs, Allen & Co. and JPMorgan.

According to IPO research and advisory firm IPO Boutique, the Coupang IPO is “multiple times oversubscribed,” meaning the request for shares among institutional investors is much higher than what’s being made available.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

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