South Korean grocery-delivery startup Kurly wins IPO nod
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Kurly Corp., the operator of South Korean e-grocery platform Market Kurly, received preliminary approval for its push for an initial public offering (IPO) Monday.
The approval by the Korea Exchange (KRX) came about five months after Kurly filed for a preliminary review of its IPO plan in late March.
Kurly earlier sought to complete its stock listing in the first half, but the review process has been delayed apparently due to worries over its “unstable” ownership structure in which its founder has a small stake, along with continuing losses from its business.
Kurly reportedly included in its IPO plan with the KRX the promises from its financial investors to maintain their holdings in the company for a certain period.
Launched in December 2014, Kurly has appealed to customers by providing early morning deliveries of fresh foods through its e-grocery platform, Market Kurly.
Last year, Kurly posted sales of 1.56 trillion won (US$1.16 billion) and an operating loss of 213.9 billion won. But it reported a net loss of around 1.28 trillion won.
Concerns are high over its IPO process, as the stock market conditions remain unfavorable. Some experts say Kurly could have trouble in the process of setting the IPO price it sees as satisfactory.
Questions & Answers
Q.What specifically caused the delay in Kurly's IPO review process?
What specifically caused the delay in Kurly's IPO review process?
The review process was apparently delayed due to concerns about Kurly's unstable ownership structure, where its founder holds a small stake. Continuing business losses also contributed to the delay in obtaining preliminary approval.
Q.What measures has Kurly taken to address investor concerns ahead of its IPO?
What measures has Kurly taken to address investor concerns ahead of its IPO?
Kurly reportedly included promises from its financial investors in its IPO plan submitted to the KRX. These promises commit the investors to maintain their holdings in the company for a certain period, aiming to stabilise investor confidence.
Q.What were Kurly's financial results for the last year?
What were Kurly's financial results for the last year?
Last year, Kurly achieved sales of 1.56 trillion won (US$1.16 billion). However, the company reported an operating loss of 213.9 billion won and a net loss of approximately 1.28 trillion won.
Q.What challenges does Kurly face with its upcoming IPO?
What challenges does Kurly face with its upcoming IPO?
Concerns are high over the IPO process due to unfavourable stock market conditions. Experts suggest Kurly may encounter difficulties in setting an IPO price that the company finds satisfactory given these market circumstances.
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