SSG.com seeks to expedite IPO to next year amid e-commerce boom

SSG.com seeks to expedite IPO to next year amid e-commerce boom

Shinsegae Group’s integrated online shopping platform SSG.com is seeking to go public next year, earlier than the original timeline of 2023, as it is hoping to raise capital to upgrade its platform to stay competitive in the burgeoning e-commerce market.

According to multiple sources from the investment bank industry on Monday, SSG.com recently reached out to multiple brokerages to seek advice on its initial public offering (IPO) plan, suggesting that the timeline for an IPO might have been brought forward to next year from initial 2023.

SSG.com vowed to go public in 2023 when it received 1 trillion won ($870.9 million) investment pledge from private equity firms Affinity Equity Partners and BlueRun Ventures in 2018.

Some projected that SSG.com would send out request for proposal (RFP) for underwriting service this week.

SSG.com confirmed that it is readying an IPO but has not made any decision on details such as IPO schedule.

Shares of Emart, which owns 50.08 percent stake in SSG.com, closed 3.51 percent higher at 177,000 won on Tuesday. Those of Shinsegae, which holds 26.84 percent ownership, gained 0.19 percent to end at 268,500 won.

The earlier-than-expected move comes as next-day fresh food delivery platform operators are enjoying a business boon as consumers increasingly turn to online grocery shopping during the pandemic times.

Kurly Inc., operator of premier online food selling platform Market Kurly, is also looking for an IPO manager with an aim to go public on the Korean stock market next year after scrapping the original plan to go public in the U.S.

Another local grocery delivery platform Oasis Market has already picked Korea Investment & Securities and NH Investment & Securities as its co-advisors for the IPO.

SSG.com is also trying to ride on the momentum when its value is heading up. Shinsegae’s Emart also signed a contract to buy an 80 percent stake in eBay Korea last month, allowing SSG.com to leapfrog to No. 2 on the Korean e-commerce market. Ebay also operates Gmarket and Auction.

Last year, SSG.com raised record 1.29 trillion won in revenue, up 53 percent from the previous year. Its gross merchandise value also surged 37 percent to 3.9 trillion won.

Sources noted that SSG.com would be valued at up to 10 trillion won after IPO.

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