Coupang's US IPO 'Opening'... Market Kurly Also 'Knocking'

Coupang's Successful Listing on the New York Stock Exchange
Market Kurly and Others Also Announce NYSE Listings
Overseas IPOs Expected to Become a Popular New Option

[Asia Economy Reporter Hwang Junho] Coupang successfully settled on the New York Stock Exchange (NYSE) on the 11th (local time), opening the way for domestic companies to go public overseas. Immediately, its competitor Market Kurly announced plans to list on the New York Stock Exchange within the year. With Coupang’s accumulated deficit exceeding 4 trillion won and being valued at $63 billion (approximately 71.8 trillion won) based on the public offering price, not only major IPO candidates scheduled for this year but also unicorn companies are considering overseas IPOs as an important option.

On the 12th, Market Kurly announced that it is preparing for a listing on the New York Stock Exchange. Earlier, the U.S. economic media outlet The Wall Street Journal (WSJ) published an interview article on the 11th (local time) stating that Kim Seul-ah, CEO of Market Kurly, is discussing plans for a New York Stock Exchange listing within the year with financial professionals. In the industry, besides Market Kurly, the possibility of an overseas IPO for Viva Republica (Toss) is also viewed as high.

Will Domestic Unicorns Head Overseas?

A unicorn refers to an unlisted company with a corporate value exceeding 1 trillion won. Most unicorns have a high ratio of foreign capital. This means that, like Coupang, conditions are favorable for them to knock on the door of the New York Stock Exchange rather than the domestic market. According to CB Insights, a U.S. market research firm, among South Korean unicorns, except for WEMAKEPRICE, Aprogen, and Yanolja, domestic capital accounts for less than 10%. Among these, L&P Cosmetic, GP Club, and Musinsa have no domestic capital investment at all. For such companies, securing management rights through dual-class voting shares like Coupang and listing in markets with investors favorable to the company can be advantageous for further growth.

In particular, the fact that corporate value can be evaluated higher than domestically is a significant advantage. In Coupang’s case, U.S. investors, having observed Amazon’s success, highly valued its market potential and prospects, setting the public offering price at $35 per share. The price-to-earnings ratio (PER) of companies listed on the Korea Exchange is 15 times, which is undervalued compared to New York’s 25 times.

The possibility of major IPO candidates scheduled for domestic listing this year switching to overseas IPOs has also increased. Krafton, which secured global users with Battlegrounds, SK IE Technology, which supplies separators for secondary batteries to various countries, and LG Energy Solution, a spin-off from LG Chem’s battery division, are considered companies with high potential for overseas IPOs.

Stock exchanges in each country are also competing for listings, and it is evaluated that if the volume is considered a major listing in Korea, overseas IPOs are sufficiently possible.

Securities Firms Also Interested in Overseas IPO Brokerage

Domestic securities firms are also joining these movements of companies. A securities firm official said, "Coupang has accelerated one of the long-term tasks of the securities industry," adding, "We are considering promoting a business that connects domestic companies to overseas IPOs through local overseas subsidiaries or foreign securities firms."

Hwang Sewoon, a research fellow at the Korea Capital Market Institute, said, "For companies preparing to go public, if the most important criterion is at what price to sell the company to the market, Coupang’s overseas IPO presents a clear example," adding, "If overseas markets can offer higher valuations, there is no reason to refuse." He further added, "Major IPO candidates in Korea this year, such as KakaoBank, appear to be companies that can sufficiently list on the New York Stock Exchange or NASDAQ."

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