Coupang Announces Pre-Arranged Stock Sale Plan by Founder

Rhea-AI Summary

Coupang announced that CEO Bom Kim has adopted a pre-arranged stock trading plan to sell up to 15 million shares of Class A Common Stock starting November 11, 2024. The plan, established under SEC Rule 10b5-1, will terminate upon completion of sales or by August 29, 2025. Kim will also donate up to 2 million shares to a charitable fund. These transactions represent less than 10% of Kim's current 174.8 million Class B shares. After completion, Kim will retain 157.8 million Class B shares and doesn't plan further transactions through 2025.

Positive

• CEO maintains significant ownership stake with 157.8M shares after planned sales
• Structured sale plan indicates compliance with SEC regulations
• CEO commits to no further share transactions through 2025

Negative

• Insider selling of 15M shares by CEO
• Additional 2M shares being removed from CEO ownership for charitable purposes

Insights

Financial Analyst

The planned sale of 15 million shares by CEO Bom Kim, starting November 2024, represents a significant but manageable insider transaction. The structured 10b5-1 plan demonstrates careful compliance and planning, with the sales representing 8.6% of Kim's holdings. Important context: Kim has held his position since the 2021 IPO without any sales and the timing allows for a full year's notice to markets. The additional 2 million shares earmarked for charitable donations shows commitment to social responsibility. With Kim retaining 157.8 million Class B shares post-transaction and committing to no further sales through 2025, this appears to be a well-managed liquidation for personal obligations rather than a concerning reduction in insider confidence.

SEATTLE--(BUSINESS WIRE)-- Coupang, Inc. (“Coupang”) announced today that Bom Kim, Coupang’s founder and Chief Executive Officer, had adopted a pre-arranged stock trading plan (the “Plan”) several months previously in accordance with SEC guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, and the policies of Coupang regarding stock transactions, to sell up to 15,000,000 shares of Coupang Class A Common Stock, subject to certain terms and conditions, beginning no earlier than November 11, 2024.

Rule 10b5-1 allows corporate officers and directors to adopt pre-arranged stock trading plans that meet certain requirements when they do not have material, non-public information, to provide for the selling of up to a predetermined, fixed number of company shares under certain specified conditions. Because the sales under the Plan are subject to certain market pricing parameters and trading limitations, Mr. Kim will not have discretion over the exact number of shares that will be sold under the Plan.

Mr. Kim’s Plan will terminate the earlier of the sale of all 15,000,000 shares pursuant to the Plan or August 29, 2025. Mr. Kim entered into the Plan to satisfy significant financial requirements, including tax obligations.

Mr. Kim will also donate up to 2,000,000 shares of Coupang Class A common stock to a fund for future charitable donations.

Prior to the planned transactions noted above, Mr. Kim had not sold any shares of Coupang common stock since the closing of Coupang’s initial public offering on March 15, 2021.

These planned transactions represent less than 10% of Mr. Kim’s current ownership of 174,802,990 shares of Class B Common Stock. If Mr. Kim completes all the planned transactions, he will continue to own 157,802,990 shares of Class B common stock.

After the completion of these transactions, Mr. Kim does not intend to engage in any further share transactions through the end of 2025.

About Coupang

Coupang is a technology and Fortune 200 company listed on the New York Stock Exchange (NYSE: CPNG) that provides retail, restaurant delivery, video streaming, and fintech services to customers around the world under brands that include Coupang, Coupang Eats, Coupang Play and Farfetch.

Forward-Looking Statements

This press release contains statements that may be deemed to be "forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Act”), that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws, including statements relating to our expectations about the amount and timing of sales or donations of Coupang Class A Common Stock by Mr. Kim. Actual results and outcomes could differ materially for a variety of reasons, including, among others, fluctuations in Coupang’s stock price, changes in law or legal requirements, legal or contractual restrictions on sales of stock by Mr. Kim, that the Plan may be modified, suspended or terminated by Mr. Kim at any time, and that the price and volume parameters of the Plan may not result in the sale of all of the shares of Coupang Class A Common Stock subject to the Plan. For additional information on other potential risks and uncertainties that could cause actual results to differ from those expressed or implied by any forward-looking statements, please see our most recent Annual Report on Form 10-K and subsequent filings. All forward-looking statements in this release are based on information available to Coupang and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241106833188/en/

For media:

Coupang PR

press@coupang.com

For investors:

Coupang IR

ir@coupang.com

Source: Coupang

FAQ

How many shares will Coupang (CPNG) CEO Bom Kim sell under the new trading plan?

Bom Kim plans to sell up to 15 million shares of Coupang Class A Common Stock under the trading plan.

When will Coupang (CPNG) CEO's stock trading plan begin and end?

The trading plan will begin no earlier than November 11, 2024, and terminate by August 29, 2025, or upon completion of the 15 million share sale.

What percentage of Bom Kim's Coupang (CPNG) ownership will be sold?

The planned transactions represent less than 10% of Kim's current ownership of 174.8 million shares of Class B Common Stock.

How many Coupang (CPNG) shares will CEO Bom Kim donate to charity?

Bom Kim plans to donate up to 2 million shares of Coupang Class A common stock to a fund for future charitable donations.