Tencent technology news, according to foreign media reports, according to sources monday revealed that south korea's leading e-commerce operator Coupang plans to buy a major stake in eBay south korean branch, because the company is seeking to expand the entire company, followed by an initial public offering (IPO) on nasdaq.
According to a report released by Hana Daewoo securities, a local brokerage, coupang's largest shareholder could buy control of eBay's South Korean subsidiary. The South Korean e-commerce giant is likely to make an IPO in the US tech heavy Nasdaq next year and get more money from investors. EBay South Korea is waiting to sell.
Analysts at Hanya Daewoo Securities Park Jong-dae wrote in a report to clients:
As of now, Coupang has received $3 billion from softbank and its vision fund, and its daily delivery has climbed from about 2.2 million at the end of last year to 3 million in mid-february.
An outbreak of coronavirus has helped Coupang a lot in order. However, most of these orders are low-margin goods, such as cheap household goods and fresh produce, so some analysts question the company's long-term profitability.
Because institutional investors typically weigh specific plans for sustainable development and profit predictability, Coupang less impressive financial statements would be a lot more if they sought to list in the US
But regulatory filings show that as of 2018, the company reported an operating loss of 1.1 trillion won, despite a 65% surge in revenue to 4.4 trillion won. That means it sells a lot; however, its main products are not expensive. In the past five years, coupang has reported a total operating loss of about won 3 trillion. From the perspective of profit predictability, coupang looks very competitive, because its total transaction volume as of 2018 is about 12 trillion won, which helps it become the largest e-commerce operator in South Korea.
SK securities, another local brokerage, recently said it would have to adhere to conservative valuation standards for deficit unicorns if Coupang listed in the u.s. stock market. Office-sharing space startups
To overcome concerns about its future profit outlook, coupang hired Kevin Warsh, a former Fed governor, and Alberto fornaro, a former chief financial officer of international gaming technology, a move widely seen as preparing for an upcoming IPO.
An industry source who did not want to be named said: