Shinsegae’s online arm preps up for local IPO

It is expected to debut next year.

Shinsegae’s online mall arm SSG.com is preparing for a listing on the local stock market, and has requested major local securities to submit bids for the selection of a lead manager for its initial public offering (IPO), Yonhap reported.

The company plans to use the proceeds from the envisioned IPO in its logistics infrastructure and information technology.

The online mall has not mentioned a date for its stock market listing, but it is expected to debut on the local stock market next year if the IPO process goes without a hitch.

Industry watchers had originally expected SSG.com to carry out an IPO in 2023 in line with E-Mart's contract with private investors.

In 2018, E-Mart, SSG.com's largest shareholder, lured $856m (KRW1t) from local equity funds on the condition that those investors request E-Mart buy their shares in SSG.com should the online mall fail to meet requirements for a sales target or IPO in 2023.

Analysts have said that SSG.com may have decided to move forward with its stock market listing following Coupang's listing on the New York Stock Exchange in March this year and rivals' moves to go public.