E-commerce Companies Struggling with Deficits Face Fierce IPO Competition After Coupang

Market Kurly Officially Confirms IPO Within the Year... Tmon Selected as Last Year's IPO Underwriter
11st Expected to Announce IPO Plans Soon Leveraging Amazon Partnership

[Image source=Yonhap News]

[Asia Economy Reporter Jo In-kyung] Just 2 to 3 years ago, e-commerce companies burdened with cumulative deficits and facing potential sales have been busily preparing for domestic and international listings one after another. Coupang's successful listing on the U.S. stock market, recognizing a valuation close to 100 trillion won, has created a favorable environment for initial public offerings (IPO), and the urgency to secure large-scale funds to avoid falling behind in the upcoming logistics center investment competition is intensifying the rivalry.

Strike While the Iron Is Hot

Market Kurly, the pioneer of dawn delivery, has faced continuous rumors of being sold since its establishment in 2014. Even as CEO Kim Seul-ah personally denied the possibility of a sale, intensified competition with major distribution companies and investment delays frequently sparked speculation about a potential sale.

However, Market Kurly officially announced plans to go public within the year shortly after Coupang's listing. The Wall Street Journal (WSJ) estimated Market Kurly's market value at approximately $880 million (about 1 trillion won). If Market Kurly succeeds in entering the U.S. stock market following Coupang, it is expected that its market value will be evaluated at least twice the current amount.

11st, which attempted a sale against Lotte and Shinsegae in 2017 but failed, is also expected to announce listing plans soon, leveraging its partnership with Amazon. At the end of last year, Amazon signed a 300 billion won equity participation agreement with SK Telecom, 11st's parent company, and decided to invest. Since SK Telecom is showing strong interest in acquiring eBay Korea, there is analysis that 11st could attract large-scale investments through listing by partnering with eBay following Amazon.

Tmon selected Mirae Asset Daewoo as its IPO underwriter last year and even recruited a Chief Financial Officer (CFO), actively preparing for listing. Oasis and Emart SSG.com have also hinted that although not immediately, it is time to consider going public. An Oasis official stated, "Since the dawn delivery market is gaining attention, we are considering aggressive external expansion, but the company policy is to prepare for IPO with sufficient time after securing profitability and internal stability."

An industry insider said, "Following Coupang's listing, e-commerce companies are expecting a premium on market value. There also seems to be anxiety that failure to secure investment funds through listing could result in falling behind in future competition."

All-Out Effort to Attract Investment

Coupang declared aggressive investments, including expanding logistics centers nationwide and directly hiring an additional 50,000 employees over five years, using funds raised through its listing.

In response to Coupang's expansion, competing companies urgently need facility investments such as building fulfillment centers and expanding delivery networks.

From traditional distribution companies to e-commerce and platform companies, the competition to attract IT personnel such as developers and programmers is heating up. To continuously upgrade systems that allow consumers to conveniently purchase needed products and to attract consumers, securing excellent developers quickly is essential. However, as demand surges, their market value continues to rise.

The abundant liquidity and the favorable conditions of domestic and international IPO markets, better than ever, are also cited as reasons for hastening listings.

However, as market competition intensifies, concerns about cutthroat competition among companies are also raised. A securities industry official pointed out, "Although Coupang received a good evaluation in the early stages of its listing, some bubbles may burst over time, and if competitors like Market Kurly also pursue listings one after another, the market's evaluation criteria may become stricter."

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