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Bom Kim, founder and CEO of Coupang (Coupang) |
Coupang founder and CEO Bom Kim announced on Thursday plans to sell 15 million shares valued at some $360 million — his first sale since Coupang’s New York Stock Exchange debut on March 15, 2021. He also plans to donate an additional 2 million shares to charity.
Kim currently owns 174,802,990 Class B shares and the shares he plans to sell represent almost 9.7 percent of the total holding. The Class B shares, exclusively owned by Kim, have 29 times the voting power of regular shares. He intends to convert his Class B shares into Class A shares, which are valued at $24 per share, based on the stock’s closing price on Wednesday (EST).
The stock sale process is set to begin next Monday and will be completed by Aug. 29 next year.
Coupang stated that the sale aims to meet “significant financial requirements, including tax obligations,” and will not impact Kim’s control over the company.
According to US securities laws, corporate officers must preannounce the quantity and period for share sales to prevent insider trading based on nonpublic information. Kim’s advance disclosure of such large-scale sale complies with this requirement.
Coupang noted that more details about how the newly secured cash will be used have not yet been decided.
Meanwhile, Coupang announced on Thursday that it would invest 100 billion won ($71.43 million) to begin construction of the Gimcheon Fulfillment Center in Gimcheon, North Gyeongsang Province.
The center will cover some 32,000 square meters, and is expected to be completed by September next year. Once operational, Coupang expects the center to create over 500 direct jobs, in hopes to contribute to revitalizing the local economy.
Coupang has continued expanding its logistic network nationwide with over 3 trillion won investment. Currently, nine locations have been completed or under construction, with aims to hire more than 80,000 workers.
