Oasis Corp. CEO Ahn Jun-hyung speaks at a press event at a Seoul building on Feb. 8, 2023, ahead of the company’s initial public offering later this month, in this photo provided by the company.
SEOUL, Feb. 9 (Korea Bizwire) – Oasis Corp., a South Korean e-grocery store operator, on Wednesday announced its ambition to boost its members and build new logistics centers as it prepares to go public in the local stock market later this month.
Oasis will debut on the secondary KOSDAQ market on Feb. 23, becoming South Korea’s first e-commerce platform to publicly trade on the local stock market.
“Through the KOSDAQ debut, we plan to raise brand awareness, strengthen our existing businesses and make forays into new ones as we aim to become a representative company in the industry,” CEO Ahn Jun-hyung said in a meeting with reporters.
KOSDAQ is South Korea’s secondary stock market, where mostly tech companies and startups are traded.
He said he will use the IPO proceeds to increase the number of members to 10 million from the current 1.3 million, build two logistics centers by 2025 and expand its early-morning delivery services to regions outside of the greater Seoul area.
Founded in 2011, Oasis is the operator of Oasis Market, an e-grocery store known for lower priced, private-brand organic produce. It owns 53 offline stores and three logistics centers in the greater Seoul area.
The company posted 311.8 billion won (US$248 million) in sales and an operating profit of 7.7 billion won as of the third quarter of 2022, up 19.86 percent and 80.67 percent, respectively.
Oasis Corp.’s headquarters is seen in this undated file photo provided by the company on Oct. 15, 2023.
The e-grocery store operator said its strong customer loyalty, affordable and quality products, and its cost-effective logistics system will be able to beat harsh market conditions.
“Our biggest strength is our robust performance. The company has continued to post profits despite our small pool of members,” Ahn said. “We have continued to remain in the black in a market known for very thin margins.”
Ahn also said the company will expand product categories to processed goods, while growing new business areas, such as quick commerce and live commerce, or selling products via a live video service.
As e-commerce operators start to attain economy of scale, many have set their eyes on an IPO to raise funds and expand infrastructure and get ahead in South Korea’s growing online grocery market.
Coupang Inc. went public in the tech-heavy Nasdaq in 2014.
Earlier this month, Kurly Corp., the operator of South Korean e-grocery platform Market Kurly, postponed an IPO originally planned for early this year, due to harsh market conditions.
(Yonhap)
