WASHINGTON, March 11 (Yonhap) – South Korean e-commerce giant Coupang Inc. caused a stir during its historic New York Stock Exchange debut on Thursday with an IPO price set at $ 35 per share.
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This amount exceeds the initially proposed range of $ 32-34 per share.
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With 130 million shares on offer, Coupang raised $ 4.6 billion in public offering. According to data from Yahoo Finance, the company was worth around $ 88.65 billion at the close of its first session, making it one of the highest-valued startups in the United States. .
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Coupang shares started trading at $ 63.5 per share, up 81.4% from the IPO price, and closed up 40.71% at $ 49.25. The Dow Jones Industrial Average gained 0.58%.
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“Korean industry and creativity created the ‘Han River Miracle’. And we’re so excited to be just a small part of this amazing story, ”said Kim Bom-suk, Founder and CEO of Coupang, in an interview with CNBC, referring to Korea’s rapid economic growth. of the South on the ashes of the Korean War (1950-1953).
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Noting that Coupang’s debut marks the largest IPO of a foreign company since Chinese firm Alibaba in 2014, Kim said he added a new “testament to Korean history.”
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Kim placed high hopes in South Korea’s more than 530 trillion won e-commerce market, calling it “the world’s only Top 10 e-commerce market not controlled by Amazon and Alibaba” in a separate online interview with South Korean journalists in the United States.
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High on the priorities of the CEO of Coupang is the nationwide expansion of delivery centers, which would require around 50,000 additional hires over the next five years, he said.
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He also showed optimism about Coupang’s huge financial deficit.
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“We see this as an investment rather than a loss, and we intend to invest aggressively, continuously and strategically,” he explained.
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Coupang’s operations will be focused on the local e-commerce market, although overseas expansion may be considered in the long term, he told reporters.
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Regarding the many merger and acquisition initiatives in the retail sector in South Korea, Kim felt that such a move would not be of immediate interest to Coupang. The company is not necessarily against mergers and acquisitions, but that would require a lot of trust and analysis, he developed.
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According to its registration form filed with the United States Securities and Exchange Commission, Coupang seeks to build additional logistics centers, develop employment and venture into new lines of business with the proceeds of the sale of its shares in the United States.
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The company already has around 70% of South Korea’s population within an 11-kilometer radius of its distribution centers, but more facilities are needed in rural areas to bolster its super-fast delivery service, the document explains. .
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“I think we have been fortunate to work with all of my colleagues and investors who have been aligned and unwavering on the long term strategy. We’re here because we’ve kept our eyes on this long-term strategy with the goal of creating real value for our customers and shareholders, ”Kim noted in the interview.
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“So I think we’ll continue to stay focused. This IPO now gives us the resources to remain steadfast in this journey, ”added the CEO.
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The company announced earlier that the IPO process would be legally completed by Monday.
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