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Softbank poises its invested startup Coupang IPO within Q2 2021.

Source: Softbank

Seoul, South Korea / Tokyo, Japan - A report from Bloomberg indicates that Softbank Group plans to take at least six additional portfolio companies public this year. 

Among the companies under consideration for an initial public offering (IPO) is South Korean e-commerce company Coupang, which could be valued at more than $30 billion in the second quarter.

A review of Coupang's 2019 financial statements indicates an operating loss of 720.5 billion won (approximately $658 million), accompanied by a negative cash flow in all areas except financing activities. 

At the end of 2019, the company's cash and cash equivalents were valued at 815.8 billion won (approximately $746 million).

Industry analysts project that Coupang's revenue for 2020 will range between 13 trillion won ($12 billion) and 16 trillion won ($15 billion), representing an increase of 1.8 to 2.3 times the figure recorded in 2019. 

It is anticipated that the company will reduce its operating losses in 2020.

Coupang operates 168 rocket delivery logistics centers nationwide and is expanding its offerings to include rocket-fresh food. 

Moreover, the company has introduced Coupang Play, a streaming service analogous to Amazon Prime Video, as a component of its Rocket membership program.

The company has registered a Chinese trademark, "Gou ban," which may indicate future expansion plans. 

Approximately 175 Coupang employees are estimated to be based in the Shanghai office, most engaged in software engineering and data science roles.

Coupang currently confronts significant regulatory challenges in South Korea, particularly regarding its logistics operations. 

In December, the company submitted an application to the South Korean government for authorization to operate a third-party logistics business.

It has been reported that SoftBank's Vision Fund has acquired a 37% stake in Coupang for $2.7 billion, representing a post-money valuation of $9 billion. 

Other SoftBank-backed companies, such as Lemonade Inc. and DoorDash Inc., have recently made successful public debuts.

The United States initial public offering (IPO) market witnessed a record $208 billion in offerings last year, driven by the implementation of central bank stimulus and the participation of individual investors.