Coupang Announces Partial Early Lock-Up Release

Rhea-AI Summary

Coupang, Inc. (NYSE: CPNG) has announced a partial early lock-up release of approximately 34.0 million shares of Class A common stock, set to occur at the market open on March 18, 2021. This release is applicable to shares held by employees, excluding certain officers, whose restricted period ended as of March 15, 2021. While this portion of shares becomes available for public trading, the remaining shares will continue to be subject to the lock-up agreements.

Positive

• Partial release of 34.0 million shares increases liquidity for shareholders.
• Early lock-up satisfaction may indicate positive market sentiment.

Negative

• Potential dilution of existing shareholder value with the release of additional shares.

Coupang, Inc. (NYSE: CPNG), one of Asia's largest eCommerce companies, confirmed that conditions were satisfied for a partial early lock-up release that will occur at the open of trading on March 18, 2021 with respect to its shares of Class A common stock, par value $0.0001 per share (the “shares”), pursuant to the terms of certain lock-up agreements (“lock-up agreements”) entered into by Coupang’s directors, officers, and affiliated entities with the underwriters of Coupang’s initial public offering.

Pursuant to the terms of the lock-up agreements, the restricted period will end with respect to all outstanding shares held as of February 26, 2021 by employees of Coupang (excluding officers who are subject to Section 16 of the Securities Exchange Act of 1934, as amended, and their affiliates) as of December 31, 2020 (collectively, the “Early Release Employee Group”), including any shares held by any trust for the direct or indirect benefit of a lock-up party or of an immediate family member of the lock-up party, in each case to the extent received in their capacity as an employee of Coupang. The conditions for this early release were satisfied as of the close of trading on March 15, 2021.

Coupang estimates that approximately 34.0 million shares held by the Early Release Employee Group will become eligible for sale in the public market at the open of trading on March 18, 2021.

The restricted period will continue to apply with respect to all remaining shares subject to the lock-up agreements.

About Coupang

Coupang is one of the largest eCommerce companies in Asia, with a mission to revolutionize the everyday lives of its customers and create a world where people wonder, “How did we ever live without Coupang?” Coupang offers a variety of services, including same-day and next-morning delivery of groceries and general merchandise, delivery of prepared foods through Coupang Eats, and video streaming through Coupang Play. Founded in 2010, Coupang, which operates in Korea, has offices in Beijing, Los Angeles, Seattle, Seoul, Singapore, Shanghai, and Silicon Valley.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210315005819/en/

FAQ

When will Coupang's early lock-up release occur?

The early lock-up release for Coupang will occur at the open of trading on March 18, 2021.

How many shares will be released from lock-up for Coupang?

Approximately 34.0 million shares held by the Early Release Employee Group will become eligible for sale.

Who is affected by the early lock-up release at Coupang?

The early lock-up release affects employees of Coupang, excluding certain officers subject to regulations.

What was the condition for Coupang's early lock-up release?

The conditions for the early release were satisfied as of the close of trading on March 15, 2021.