Coupang, seen by many as South Korea’s answer to Amazon (NASDAQ: AMZN), recently announced its initial public offering in New York in a move that could raise up to $ 3.6 billion and estimate the company at $ 51 billion. After experiencing years of sustainable growth followed by its plans in time to advertise to the public, could Coupang’s ambitions cause Amazon some anxiety? The Coupang bid may be the largest to list in 2021 and is likely to be the largest overseas initial public offering (IPO) in the US since Alibaba in 2014. Although the listing may be seen as a bold move by the company, it is a strategic effort. Take advantage of the option to list both Class A and Class B posts simultaneously. (Image: The Economist) The list comes at a time when Coupang is experiencing rapid growth. Having only been incorporated in 2010, the new $ 51 billion valuation represents a massive jump from the $ 2 billion round of financing from the Softbank Vision Fund in 2018, which valued the company at nearly $ 9 billion. The company that fought Amazon in Korea There have been a lot of comparisons between Coupang and e-commerce giants Amazon given that both companies are built on affordability, convenience, and fast delivery times. Even in terms of marketing, the slogan is “How would we live without Coupang?” It uses topics similar to Amazon’s focus on “customer obsession,” such as pleasing customers and eliminating pain points when it comes to shopping online. Since more than half of Koreans have downloaded the Coupang app, the company’s approach is clearly gaining market confidence. (Image: Pulse) No company in the Korean online retail market has been able to grow at a Coupang rate between 2019 and 2020 in terms of market share. Similar to Amazon, Coupang founder and CEO Bom Kim quickly capitalized on the importance of controlling the delivery process. The company has poured millions into building its own logistics network – including 200 warehouses spanning 20 million square feet across Korea, plus trucks and thousands of delivery drivers. Impressively, the company states that 70% of Koreans live within 10 minutes of the Coupang logistics hub, making last mile delivery much easier. It should be noted, however, that South Korea is one of the most densely populated countries in the world. 2020 also saw the launch of Coupang for Dawn Delivery, an advanced delivery service that promises to deliver items to customers by 7 a.m. the next day provided they place their orders by midnight the day before. This represents the quality of service and the level of production that even Amazon cannot currently match. With Coupang making strides in dominating the South Korean retail market, the company’s initial public offering may signal its willingness to expand into new markets – and it will likely take its sophisticated approach to e-commerce to Amazon territory. Raising Coupang’s IPO While Coupang’s next steps after the initial public offering are not immediately apparent, the company’s financial position will be welcome to potential investors. Coupang posted a gross profit of around $ 2 billion in 2020 – a massive 92.3% increase over the previous year. Elsewhere, operating losses improved to $ 0.5 billion in 2020, which is less than the $ 0.6 billion recorded in 2019, while the company’s net operating margin decreased to -4.4% in 2020 from 10.3% in 2019. Cash became operational. Positive in 2020, rising to $ 0.3. $ 1 billion in 2020 from -0.3 billion in 2019. The revenue growth for Coupang in South Korea is higher than that of other companies operating in a template similar to the Amazon model on a much smaller scale. Unlike the LATAM and ASEAN regions that are growing from a low base, South Korea’s internet penetration and smartphone adoption could rival many western countries. Nevertheless, many Amazon Baby companies recorded stunning stock market gains in 2020. The asset class may not be able to sustain its gains as the Covid-19 pandemic has raised revenue projections for e-commerce by about three or four years. Even so, it is reasonable to expect Coupang’s listing to be highly underwritten. Can Coupang Go Global? Coupang is assessing the condition of its competitors worldwide as a major risk ahead of the IPO, along with potential hurdles such as operating costs and labor disputes. Domestically, Coupang has invested huge sums in its logistics network that it is difficult for newcomers to provide similar services. However, the company’s overseas competitors are extremely resourceful in terms of financial strength. For example, in late 2020, Amazon bought what would become a 30% stake in 11th Street, the Korean e-commerce operator, which is largely owned by SK Telecom. Coupang assesses this risk by stating that “many of our competitors, and potential competitors, may have competitive advantages such as longer operating history, more experience implementing their business plan and strategy, better brand recognition, popular offline sites, greater negotiating leverage, setting up Significantly greater supply, financial, marketing and other resources. ” While Coupang may be looking to become international in the wake of the initial public offering, the company is wary that it does not have anywhere near the same levels of brand recognition and history as its major competitors – making a cautious outward expansion more likely as the market has started in Stability in the Aftermath of COVID-19. How to Invest in Coupang’s IPO As one of the biggest foreign initial public offerings to hit the US market since Alibaba’s arrival in 2014, Coupang’s listing may be intriguing for investors. However, for those looking to buy into South Korea’s innovative answer to Amazon, the path to investing in an IPO is not always straightforward. The simplest way to invest in an IPO is to do it on the company website itself and search for the opportunity directly. Unfortunately, many companies are shying away from IPOs to the public in favor of selling larger volumes in a single deal to institutional investors. Despite this, there are some companies available that allow individual investors to participate in the many initial public offerings that would otherwise be difficult to access. When listing Coupang’s retail IPO, Freedom Holding Corp. (FRHC), a NasDaq-listed retail brokerage, provides a platform that enables users to apply to participate in several IPOs – including Coupang – however, the minimum applications start at $ 2,000. . Other traditional organizations like Fidelity also allow users to participate, but only at an upper limit of $ 100,000 or $ 500,000 in home assets – depending on the terms of the IPO. With Coupang looking to the IPO as a catalyst to build on the progress of the booming 2020 year, it is definitely worth investing a deeper look into the development of innovative Baby Amazon company in South Korea. 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