The dry period of startup IPOs in South Korea may end in August as the first mobility unicorn startup Socar is set to list its IPO on KOSPI. The car-sharing platform has estimated its corporate value at up to 1.6 trillion won ($1.2 billion) for the initial public offering in August. According to reports, its 4.55 million initial shares will be priced at 34,000-45,000 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 bourse this year. Socar filed initial paperwork for a public offering in January and submitted a securities declaration to the Financial Services Commission on June 24. The firm will confirm the IPO price after July 1-2 book building.
Mirae Asset Financial Group is the lead manager for the IPO, the co-organizer is Samsung Securities, and the acquiring company is Yuanta Securities. The company seeks to raise up to 205 billion won ($159 million) from the public offering.
Growth despite economic slowdown
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. Socar’s car-sharing sales grew by 31% compared to the previous year in 2021.
Socar CEO Park Jae-wook said, “Socar, Korea’s first mobility unicorn company, has continuously improved its rapid growth and profitability through accumulated data and mobility technology over the past 11 years. We plan to invest for the company’s growth, such as investment, the launch of new services, securing technological capabilities, and investment to strengthen business competitiveness.”
Socar launched in Malaysia in January 2018 and allowed users to book cars that can be rented by the hour, day, or week. The mobility company also launched a business car rental program recently.
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Socar is Korea’s first mobility unicorn service provider to go public in August. The company, which offers cash for junk cars services and other vehicle removal services, was founded in Los Angeles and Santa Clarita.
Services offered by Socar includes cash for junk cars, junk car removal, cash for cars, and junk car recycling.
Apart from providing cash for junk cars and other vehicle removal services, Socar recycles old vehicles into raw materials such as steel and aluminum.
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