SoftBank Vision Fund Poised for Big Win in Coupang $50B Value IPO

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by John Kiguru · 3 min read
SoftBank Vision Fund Poised for Big Win in Coupang $50B Value IPO
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Fueled by the pandemic, Coupang recorded gains of $12B, a 91% rise from 2019.

SoftBank Vision Fund is set for a big win championed by Coupang. Coupang (symbol CPNG) is set to IPO on the New York Stock Exchange at an undisclosed price and date. The IPO is being valued at $50B or possibly higher making it the biggest IPO by a foreign company since Alibaba back in 2014. The valuation is close to eBay at $42B, but Coupang has been growing and expanding at a bigger rate. Because of this, there is the expectation that Coupang will surpass eBay by a long way on its IPO or in the near future. In fact, some believe that Coupang’s valuation could go as high as $100B supported by the current market frenzy and its market dominance in Korea.

With a 37% stake, the Vision Fund would reach $18.5B if the value stays at $50B, or $37B if the value will hit $100B. But sources close to the matter have revealed that the fund will not sell on the IPO shares offered on the stock exchange. Though this would be its most recent record gain, the fund has been on a winning streak. In the last quarter, the fund pocketed $16.8B in investment gains. This was largely pushed by the DoorDash IPO in which the fund was the largest investor. Additionally, Uber Technologies Inc (NYSE: UBER) recorded impressive gains which further supported the fund.

Coupang Ahead of IPO: Dominance in Korea

The Vision Fund invested in a number of startups including DoorDash, Uber, Nvidia Corp (NASDAQ: NVDA), Opendoor, and the ripened Coupang. Coupang is a South Koren e-tailer founded in 2010 by Bom Kim. Fueled by the pandemic, Coupang recorded gains of $12B, a 91% rise from 2019. But despite this, the company made a $567.6 million loss, a drop from $770.2 million evidence that it is narrowing. Furthermore, the company has stated that it plans to invest $870M in 2021 to build fulfillment centers.

Coupang is the largest eCommerce company in Korea. The company has adopted Amazon-like policies but enjoying a considerably smaller population which has enabled it to be more efficient. The 2020 pandemic was also a big factor putting them ahead of brick-and-mortar retail. This has been a growing trend around the world.

As the most recent tech company IPO and a stock market frenzy ongoing, Coupang is set to be received by investors with open arms. Samsung Securities analyst Park Eun-Kyung has disclosed to Reuters that the valuation is not exaggerated. The analyst added that “Coupang’s market leadership is a premium factor.”

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John Kiguru

Kiguru is a fine writer with a preference for innovation, finance, and the convergence of the two. A firm adherent to the groundbreaking capability of cryptographic forms of money and the blockchain. When not in his office, he is tuned in to Nas, Eminem, and The Beatles.

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