Following Coupang, Tmon Joins IPO Race... Competition for Market Leadership Intensifies

[Asia Economy Reporter Kim Bo-kyung] Online shopping mall TMON has secured an investment of 305 billion KRW, gaining momentum to push forward with its initial public offering (IPO) in the second half of this year.

Following Coupang's plan to list on the New York Stock Exchange (NYSE) in the United States, TMON's domestic KOSDAQ listing is also expected to accelerate. Competition among companies to dominate the e-commerce market is likely to intensify.

On the 19th, TMON announced that the PSA Consortium, led by domestic private equity fund (PEF) operator PSA Alliance, secured 255 billion KRW in investment through domestic institutions and foreign capital attraction. Additionally, existing major shareholders Kolberg Kravis Roberts (KKR) and Anchor Equity Partners contributed an additional 50 billion KRW.

Investors participated in the capital increase by acquiring exchangeable bonds (EB). EBs can later be fully converted into equity, improving the financial structure.

TMON selected Mirae Asset Daewoo as the lead underwriter for its IPO in April last year and began the IPO process, but it needed to resolve part of its capital erosion to proceed with the listing. As of 2019, TMON's debt reached 658.1 billion KRW.

With this new investment, TMON has resolved its capital erosion and can now proceed with the IPO. It has also secured resources for growth.

TMON explained, "The PSA Consortium, overseas investors, and shareholders participated in the investment because they highly evaluated TMON's competitiveness and growth potential."

In fact, as TMON has actively promoted 'time commerce,' offering special deals in seconds and minutes, new subscribers increased by 47.8% year-on-year last year, with the number of subscribers in their teens nearly tripling.

TMON's premium membership 'Super Save' members increased fivefold year-on-year as of the third quarter, and their average purchase amount per transaction grew more than three times.

Lee Jin-won, CEO of TMON, said, "This investment will serve as an opportunity to settle capital deficits and concretize preparations for a successful IPO in the second half of the year."

[Image source=Yonhap News]

Going forward, competition for dominance through listings and investment attraction in the e-commerce industry is expected to become even fiercer. Earlier, Coupang announced on the 12th that it had submitted a registration statement for listing on the NYSE.

Following the IPO process, Coupang is expected to soon hold roadshows for investors, and after the public offering price is finalized, begin trading its shares on the NYSE.

Considering the time required for these procedures, barring any unexpected variables, Coupang's debut on the New York Stock Exchange is likely next month.

Rumors about Coupang's U.S. stock market listing have persisted for some time. In recent years, every time foreign executives such as the Chief Financial Officer (CFO) and Chief Accounting Officer (CAO) were recruited, it was interpreted as preparation for the listing.

This content was produced with the assistance of AI translation services.