Coupang, backed by SoftBank Group, was valued at about $109 million in its market debut Thursday after raising about $4.6 billion in the largest initial public offering on the U.S. stock exchange this year.
The company’s share rose by 81% to open at $63.5, and the company recorded selling about 130 million shares in the initial public offering at a price of $35 per share, which was higher than analysts’ expectations, which ranged between $32-34 per share. which gave the Korean e-commerce giant a market value of about $60 billion.
Coupang, which was founded in 2010 by the Korean-American billionaire “Bom Suk Kim“, rose to prominence after launching guaranteed same-day or next-day delivery services in South Korea, the company primarily operates an online store that sells all kinds of products from fresh groceries to toys, in addition to owning a meal delivery app called Coupang Eats.
According to the 2020 reports, the company’s net sales increased by 91% year-on-year to record $11 billion, while net losses shrank from $770.2 million in 2019 to just 567.6 million in 2020.
The SoftBank Group’s Vision Fund, which is valued at about $100 billion, owns a 35.1% stake in Coupang, whose impressive offering has boosted the gains of the Vision Fund, which has been trying to recover from its annual loss since last March, also it is reported that last month, it announced quarterly earnings that exceeded expectations.
Coupang’s initial public offering was the largest of its kind in the United States this year, after the dating app Bumble’s fundraising campaign exceeded $2.15 billion, and Coupang was ranked in 2020 as one of the best e-commerce companies in South Korea with a 19.2% market share, compared to Naver’s 13.6% share and eBay Korea’s 12.8% share, the company ranks as the 10th largest e-commerce company in the world.