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IPO Coupang

South Korean e-commerce company
IPO
Medium risk

Revenues in 2018-2020

Invest in IPO Coupang

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Investment Idea Details
The Company

Coupang is the largest e-commerce platform in Korea. Through its mobile applications and Internet websites, Coupang offers products and services that span a wide range of categories, including home goods and décor, apparel, and beauty products, fresh food and grocery, sporting goods, electronics, restaurant order and delivery, travel and everyday consumables, which are offered through a fully integrated fulfillment and logistics infrastructure. This year Coupang garnered the #2 spot on CNBC’s 2020 Disruptor 50 list of the world’s most innovative companies.

Coupang has over 100 fulfillment and logistics centers in over 30 cities, encompassing over 25 million square feet. Over 40,000 workers and thousands of delivery vehicles process, fulfill, and deliver millions of items daily. Coupang claims that 99.6% of its orders are delivered within 24 hours. Its newest app, Coupang Eats, was recently named “Best App of the Year” by Google Play and voted the “Most Popular App” in their 2020 survey of Korean users. The company was founded in 2010.

Market Opportunity

Korea is home to one of the largest and fastest growing e-commerce opportunities anywhere in the world. It is the fourth largest economy in Asia and the twelfth largest globally as of 2019, with a gross domestic product of $1.6 trillion and GDP per capita of $31,847. Total spend in retail, grocery, consumer foodservice, and travel in Korea was $470 billion in 2019 and is expected to increase to $534 billion in 2024.

While Coupang has achieved significant scale, it remains a small percentage of the total retail, grocery, consumer foodservice, and travel spend in the Korean market. The e-commerce segment of that total spend was $128 billion in 2019 and is expected to grow to $206 billion by 2024. Coupang is in the early stages of broad customer adoption.

Risks

Coupang has a history of net losses, it anticipates increasing expenses in the future, and may not be able to generate sufficient revenue to achieve or maintain profitability, which would materially and adversely affect its business, financial condition, and results of operations.

Coupang may experience significant fluctuations in the results of operations. It may be unable to accurately forecast revenue and plan expenses in the future. Inventory risks may also adversely affect the results of operations.

Financials

Coupang has raised a total of $3.4B in funding over 10 rounds from 28 institutional investors, including Softbank, Sequoia Capital, BlackRock and others. It had a valuation of $9 billion in its last private fundraising round in 2018.

The company booked $12B in revenue in 2020. Coupang generates a substantial majority of total revenue from the sale of goods and services, which are purchased from its suppliers. Gross margin is around 17%. The company is enjoying rapid growth mainly because of COVID-19 with revenue growth of 91% YoY in 2020. In addition, Coupang has shown positive cash flows provided by operating activities in 2020.

Similar public company is OZON, which is trading at 11x sales with revenue growth of 70% and negative gross margin of -2%. OZON went public in November 2020 at $30 per share, the current return on investment is 115%. Coupang is expected to become public in the beginning of March 2021.

How IPO Investments Work
1. Collection of funds

2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.

Publication
15 Feb
Threshold amount
$50
2. Buy shares

We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».

Submit applications before
TBA
3. Start Bidding

The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.

Start Bidding
TBA
Return forecast
TBA
4. Receiving profit

After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.

End
TBA
Early profit fixation

Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.

From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.

The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.

Fee

FOR ENTRY

3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.

FOR EXIT

1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.

SUCCESS

20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.

TO EARLY EXIT

Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.

Advantages Enjoyed by Those Investing with United Traders

RELIABILITY

Our risk managers ensure proper support throughout the entire transaction.

IN THE PROFIT FROM THE FIRST DAY

Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.

LOW ENTRY THRESHOLD

Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.

Invest in IPO Coupang

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