Coupang Announces US IPO Price...130 Million Shares Offered at $35 Each (Comprehensive)

Trading under the ticker 'CPNG' on the New York Stock Exchange (NYSE) starting from the 11th local time

[Asia Economy Reporter Kim Cheol-hyun] Coupang announced on the 11th that it has set the public offering price for 130 million shares (Class A common stock) subject to its initial public offering (IPO) at $35 per share. These shares began trading on the New York Stock Exchange (NYSE) under the ticker symbol ‘CPNG’ starting on the 11th (local time), and the public offering is scheduled to conclude on the 15th following the usual closing procedures. According to Coupang, the IPO registration statement for the sale of these securities was filed with the U.S. Securities and Exchange Commission (SEC), which has given its effective approval.

Coupang is expected to hit a ‘jackpot’ through this listing. The public offering price was set higher than anticipated at $35 per share, and the number of shares increased from the initially planned 120 million to 130 million, reflecting confidence in the post-listing success.

During preparations for this IPO, Coupang’s offering price steadily increased. The initial prospectus suggested a range of $27 to $30 per share. On the 9th (local time), the expected offering price was raised again to $32 to $34 per share. The company’s valuation was revised upward from $51 billion to $58 billion. With the final offering price set at $35, the valuation is now estimated to have grown to approximately $63 billion.

Since formalizing the listing and conducting roadshows locally, the company’s valuation has increased by more than $10 billion. Considering that Coupang’s last external funding round valued the company at around $9 billion, this represents a sevenfold increase. Industry insiders analyze that Chairman Kim Beom-seok gained confidence through these local investor presentations.

At a $35 offering price, Coupang’s valuation is estimated to reach 72 trillion Korean won, ranking it third among domestic companies after Samsung Electronics and SK Hynix. By offering a total of 130 million shares, Coupang will raise $4.55 billion through this IPO. Coupang explained that the funds raised will be invested in expanding fulfillment infrastructure (services that handle sellers’ delivery, packaging, and inventory management) and strengthening services. The company also left open the possibility of participating in mergers and acquisitions (M&A). If Coupang uses the investment funds to acquire Yogiyo, a food delivery app, it would instantly rise to second place in this market. German company Delivery Hero (DH) must sell Yogiyo by August this year according to conditions set by the Korea Fair Trade Commission for its acquisition of Baedal Minjok.

New business areas such as the online video service (OTT) Coupang Play are also expected to see increased investment from Coupang. Coupang Play has been continuously investing in content enhancement, including live broadcasting matches of Tottenham Hotspur, a Premier League team to which player Son Heung-min belongs, starting this month. An industry insider said, "Coupang is expected to strengthen Coupang Play’s competitiveness by securing exclusive contracts for various sports broadcasting rights."

In the existing e-commerce market, aggressive investment and employment expansion are also expected to continue. The industry anticipates that Coupang will expand and automate logistics centers to increase the Rocket Delivery service area. There are also plans to diversify product categories by expanding the overseas direct purchase service (Rocket Direct Purchase). Coupang has announced plans to hire an additional 50,000 employees by 2025, signaling an acceleration in workforce investment.

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