Kurly cancels Korea listing due to difficult market conditions

Kurly, operator of the Market Kurly online grocery shopping and delivery service, has postponed its initial public offerings (IPO). “We decided to postpone the IPO due to the global economic slowdown and weakening investor sentiment,” Kurly said in..

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Kurly, operator of the Market Kurly online grocery shopping and delivery service, has postponed its initial public offerings (IPO).

“We decided to postpone the IPO due to the global economic slowdown and weakening investor sentiment,” Kurly said in a statement Wednesday. “We will go ahead with the listing at a time when the company can be properly evaluated.”

The retailer, which is known for fast delivery and fresh products, will have to resubmit its application to be listed as a Kospi company. Kurly passed a preliminary examination by Korea Exchange (KRX) in Aug. 22, giving it a listing deadline of Feb. 22.

Poor market conditions, with the Kospi down 25 percent in 2022, has driven many companies to cancel IPOs. The list includes Hyundai Engineering, SK shieldus and One Store.

Kakao Piccoma, Kakao’s Japanese webtoon subsidiary, and game developer Lionheart Studio, have delayed their IPO plans, as has SSG.com. Oasis Market, which specializes in dawn deliveries, passed the IPO review last month and is on course still for a listing.

The delay of the Kurly listing is also in part due to a longer-than-expected examination period by the KRX. The company initially filed its application in March, and it took five months to complete the review due to the small stake of CEO Sophie Kim and the company's losses.

According to press reports, Kurly had initially planned for an IPO in New York after Coupang was listed on the New York Stock Exchange in 2021. The stock initially rose, and the company achieved a good valuation before the share price collapsed.

Kurly later changed its plan to a domestic listing.

The company was earlier valued with a potential market capitalization between 4 trillion won ($3.14 billion) and 6 trillion won.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]