Kurly Corp., the operator of South Korean e-grocery platform Market Kurly, received preliminary approval for its push for an initial public offering (IPO) Monday.
The approval by the Korea Exchange (KRX) came about five months after Kurly filed for a preliminary review of its IPO plan in late March.
Kurly earlier sought to complete its stock listing in the first half, but the review process has been delayed apparently due to worries over its “unstable” ownership structure in which its founder has a small stake, along with continuing losses from its business.
Kurly reportedly included in its IPO plan with the KRX the promises from its financial investors to maintain their holdings in the company for a certain period.
Launched in December 2014, Kurly has appealed to customers by providing early morning deliveries of fresh foods through its e-grocery platform, Market Kurly.
Last year, Kurly posted sales of 1.56 trillion won (US$1.16 billion) and an operating loss of 213.9 billion won. But it reported a net loss of around 1.28 trillion won.
Concerns are high over its IPO process, as the stock market conditions remain unfavorable. Some experts say Kurly could have trouble in the process of setting the IPO price it sees as satisfactory.