Korea’s oldest e-commerce SK ’11st’ promotes listing on KOSPI
SK Group’s e-commerce (e-commerce) platform ’11st’, which started in February 2008, will be listed on the KOSPI next year. Accordingly, 11st is pursuing an IPO (Initial Public Offering). An IPO is when a company discloses its assets and business details to the market for listing. Companies raise working capital through IPOs and help investors recover their funds.
According to the investment banking (IB) industry on the 22nd, 11st sent a ‘Request for Bidding Proposal (RFP) for listing on the stock market’ to about 10 domestic and foreign securities companies the day before. Six companies including Daishin, Mirae Asset, Samsung, Korea Investment, KB, and NH Investment & Securities were invited. Among foreign companies, Bank of America (BofA) Securities, Credis Suisse, Citigroup Global Market Securities, and JP Morgan received requests for proposals. The RFP is sent only to companies selected by the ordering company to select a partner. Securities companies wishing to participate in the bidding must submit proposals by the 11th of the following month. 11st is scheduled to start listing in May after the selection of the listing management group is completed.
11st significantly increased its investment in the second half of last year. ▲ Amazon global store launch ▲ `Live 11` built on Amazon Web Service (AWS) ▲ Shocking delivery (order before midnight arrives the next day) business expansion, etc. However, the company is currently in the red. According to the 2021 audit report released by 11st on the 4th, the operating loss in 2021 will reach 69.368.16 million. This is an increase of 610 percentage points compared to 2020. Net loss also increased by about 126 percentage points from 2020 to 9,765,643,000 won. On the other hand, the increase in sales is not large. Sales last year were only 561.4 billion won, an increase of about 3 percentage points compared to 2020.
11st is the oldest e-commerce platform in Korea, occupying 4th place in the e-commerce market share. It was merged with SK Planet in 2016, but became a separate company through spin-off in 2018. At that time, to secure liquidity during the spin-off process, it received an investment of 500 billion won from the National Pension Service, Saemaul Geumgo, and private equity fund H&Q Korea. Accordingly, SK Square (80.26%) and Nile Holdings (National Pension Service, Saemaeul Geumgo, H&Q Korea) currently own about 18% of the largest shareholder. According to the agreement to go public within five years after the investment, 11st must complete the listing by 2023, next year.
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