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It has been found that global asset managers, famous wealthy people, and major US universities are suffering huge losses after investing in Coupang stocks listed on the New York Stock Exchange. Coupang’s stock price fell below half of its IPO price after a year and two months of listing. It is estimated that some institutions are incurring over 1 trillion won in valuation losses.
Coupang share price decline to take advantage of intensive purchase
As a result of analyzing Coupang’s ‘Investment Report (13F)’ submitted to the US Securities and Exchange Commission (SEC) by the Korea Economic Daily on the 26th, 106 institutions purchased new Coupang stocks or increased their shares in the third and fourth quarters of last year. 59 institutions reduced or disposed of their shares.
New investments include △Global asset management companies such as Capital International Group, Bailey Rigford, and Duquesne Capital △Bill and Melinda Gates Foundation, a charitable organization of Microsoft founder Bill Gates, △School foundations such as Massachusetts Institute of Technology (MIT) and Washington University. included
On March 11, last year, Coupang was listed on the New York Stock Exchange at an offering price of $35. After soaring to $69 on the first day of listing, it continued to decline and it seems that institutions bought Coupang intensively when the IPO price fell below the IPO price from the third quarter of last year.
Capital International bought a total of 69.89 million shares in the third and fourth quarters of last year. As of the end of last year, the valuation amounted to $2.053.52 billion (about 2.563 trillion won). The Massachusetts Institute of Technology newly purchased 16.19 million shares (worth 593.9 billion won) in the fourth quarter of last year. At the University of Washington, Coupang accounts for 45% of its total assets. Washington University purchased 5.43 million shares (worth 199.3 billion won) over the third and fourth quarters of last year.
Estimate at least 50% loss
However, even after the third quarter of last year, Coupang continued to decline. This is because the adjustment of global growth stocks in line with the US interest rate hike and the sale of the stake in the Vision Fund acted as negative factors. As of the 25th (local time), Coupang’s stock price fell to $14.26. It was adjusted by 60% from the IPO price and 80% from the highest price. The market cap, which once exceeded 100 trillion won, has also decreased to 31 trillion won.
It is analyzed that investors are losing at least 50% as the stock price plummets. According to Whale Wisdom, a US disclosure analysis site, the purchase price of the Massachusetts Institute of Technology is estimated to be $29.38. Considering that the current share price is $14, the loss is calculated to reach 300 billion won.
The average purchase price of Capital International and Bailey Rigford is $29.24 and $38.54, respectively. The losses of the two institutions are estimated to be at least 1 trillion won each.
The Bill & Melinda Gates Foundation bought Coupang right after its listing. It is estimated that the value of the appraised value of 350 billion won at the end of the first quarter of last year has decreased to the low 100 billion won level.
Nevertheless, some US institutions appear to be convinced of Coupang’s upside potential. Duquesne Capital, owned by Stanley Druckenmiller, who has become a ‘hedge fund legend’ with an average annual return of 30% for the past 30 years, purchased an additional 7.24 million shares in the fourth quarter of last year.
Coupang is believed to be the largest stock by Duquesne Capital.
By Park Eui-myeong, staff reporter uimyung@hankyung.com
