South Korea’s No. 2 fresh food next-morning delivery platform Oasis Market is preparing to go public, joining its bigger rival Market Kurly that has already embarked a process to join the main Kospi bourse.

According to the investment banking industry on Thursday, Oasis Market plans to file for a preliminary review with the country’s sole stock market operator Korea Exchange early May for its listing on the country’s secondary Kosdaq market. Given the fact that the KRX should notify its evaluation result to an initial public offering (IPO) applicant in 45 days after the preliminary review filing, Oasis Market may be able to proceed with its market debut in July upon gaining approval.

Oasis Market, the runner-up in the country’s fresh food “dawn delivery” service market after Market Kurly, started with offline shops and then jumped into the online market in 2018, a different story from the bigger rival that started as e-commerce delivery service. Although it is a latecomer in the online market, Oasis has successfully linked its online platform with massive offline shop network.

“The company’s solid base in the offline market helped its soft-landing in e-commerce,” said an investment banking source familiar with the company.

Its corporate value is estimated at 3 trillion won ($2.4 billion). When it secured investment from Home and Shopping Co. in February, its value was estimated at 1 trillion won.

Its operating profit amounted to 5.7 billion won ($4.49 million) in 2021 on a revenue of 357 billion won. Although its operating income last year was slightly down from the previous year, it has been on the gaining track for the past ten years unlike its arch rival Market Kurly and other e-commerce platforms that are still in the red. It has focused on product competitiveness through its offline network, resulting in a repurchase rate of 80~90 percent. It has been also stringent on marketing expenses, reducing costs.

The successful listing of the country’s two overnight delivery service operators is expected to pave the way for IPOs of other e-commerce players.

Other e-commerce players, such as SSG.com and 11st Street also plan to go public. SSG.com, an online platform with lifestyle and grocery lineups under Shinsegae Group, has completed its preparation for filing after picking lead managers. But it is waiting for the stock market to stabilize before it officially embarks on the listing process.

By Kang Woo-seok and Jenny Lee

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]