Socar will become Korea’s first unicorn mobility service provider to go public in August
South Korea’s dry spell for startup IPOs could end in August as first mobility unicorn startup Socar is ready to list its IPO on KOSPI. The car-sharing platform estimated its enterprise value at 1.6 trillion won ($1.2 billion) for the IPO in August. According to reports, its initial 4.55 million shares will be priced at 34,000 to 45,000 won ($27 to $34).
Socar will be the first Korean mobility service provider to go public and the second company to list on the main KOSPI stock exchange this year. Socar filed initial documents for a public offering in January and filed a securities statement with the Financial Services Commission on June 24. The company will confirm the IPO price after the book is built on July 1-2.
Mirae Asset Financial Group is the lead manager of the IPO, the co-organizer is Samsung Securities, and the acquiring company is Yuanta Securities. The company is seeking to raise up to 205 billion won ($159 million) through the public offering.
Growth despite the economic downturn
Socar’s operating profit was 21.6 billion won ($17.9 million), with a net loss of 23.4 billion won ($19.4 million) in the third quarter of 2021. Sales Socar’s car-sharing schemes increased by 31% year-on-year in 2021.
Park Jae-wook, CEO of Socar, said, “Socar, Korea’s first mobility unicorn company, has continuously improved its rapid growth and profitability through the accumulation of data and mobility technology over the past 11 last years. We plan to invest for business growth, such as investments, launching new services, securing technological capabilities and investments to strengthen business competitiveness.
Socar was launched in Malaysia in January 2018 and allowed users to book cars that could be rented by the hour, day or week. The mobility company also recently launched a business car rental program.
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