Coupang Incorporation is set to open on the New York Stock Exchange market
Coupang Incorporation, a South Korean firm is set to open on the New York Stock Exchange market. The e-commerce firm, which is supported by Softbank Group, raised its price offering this week.
Coupang Incorporation is set to be valued at $58 billion based on its new price offering. The company’s stock market debut is the second-highest IPO opening by a foreign company in the United States.
Coupang Incorporation valuation shows the interest of investors in tech companies
Coupang’s huge IPO valuation is proof that investors are more interested in investing in tech firms. The trend is a result of the demand for tech companies during the start of the COVID-19 pandemic.
The e-commerce debut is the highest ever debut of a foreign company after Alibaba’s IPO debut in 2014. The company is based in Seoul, and it was founded by Bom Suk Kim. He is a Harvard graduate and started Coupang in 2010.
Coupang grew in Korea because of its “Rocket Delivery” offer that made products available within 24hours of purchase. The business model beat old and existing family conglomerates like Shinsegae and Lotte.
Coupang is referred to as an Amazon competitor
The South Korean e-commerce firm has been referred to as Amazon’s competitor multiple times. It received $1 billion in funding from SoftBank during an investment round and $2 billion from its Vision Fund in 2018.
Coupang announced that its shares will cost $32-$34 dollars per share, increasing its price from its former announcement of $27-$30 per share. It is certain that the company will get funding worth $4.08 billion based on its new share price.
Coupang has steadily grown in revenue and suffered minimal losses since 2018. The firm will trade on the New York Stock Exchange using “CPNG” starting this week. Notable underwriters for the listing are Goldman Sachs, Allen & Co, J.P. Morgan, Citigroup.