Oasis, a dawn-delivery success story, to list on Korea’s Kosdaq

Oasis, a Korean e-commerce company that’s actually profitable, is set to list on Kosdaq on Feb. 23 in an offering that could raise as much as 206.8 million, with some of the proceeds going to the largest shareholder.

If the initial public offering (IPO) goes as planned, Oasis will be the first domestic e-commerce operator to go public. Other e-commerce companies, such as Kurly and SSG.com, have either postponed or canceled.

Coupang, another major e-commerce operator, listed on the New York Stock Exchange in 2021.

Founded in 2011, Oasis started off by focusing on developing and selling organic goods through it physical stores. It expanded its business to dawn deliveries and online sales with Oasis Market in 2018.

The company plans to issue 3.66 million new shares and 1.57 million old shares priced between 30,500 won to 39,500 won per share, for a 159.7 billion won to 206.8 billion won fundraising.

That will give it a market value of 967.9 billion won to 1.25 trillion won.

The largest shareholder before and after the IPO is Gaeasoft, IT service company founded in 1998. After the IPO, Gaesoft will have 43.85 percent of the shares. Gaesoft previously had 55.17 percent before the IPO.

The IPO being managed by NH Investment & Securities and Korea Investment & Securities.

Oasis reported a net profit of 3 billion won in third quarter, an increase of 43 percent on year. Operating profit was 7.7 billion won and revenue was 311.8 billion won.

Oasis's edge lies in fresh products and an in-house organic brand that are antibiotic-free, eco-friendly and price competitive, the company says.

Oasis CEO Ahn Jun-hyung said that the house brands generate 60 percent of the total revenue and contributed to the building of loyalty and repeat business.

Oasis has about 1.3 million members, which Ahn ultimately aims to increase to 10 million.

"Our company's advantage lies in being profitable even with a low number of members, and the fact that we are creating profit in fresh products, which are normally low-margin items," said Ahn at a press conference held at 63 Square in Yeouido, western Seoul on Wednesday. "Although small membership may be our weakness, it also signals possibility as to how many more consumers we can retain."

Ahn explained that the company was able to reduce costs through efficient distribution, transferring the goods directly from producers to its logistics centers without wholesalers. It also reduced costs by developing its own logistics system, "Oasis Route," which is a software-based automation system that tracks the overall sales and distribution process.

Oasis is based in Seoul, focusing on Seoul and Gyeonggi, and plans to expand its business nationwide, opening logistics centers and offline stores in regions outside of the capital area. The company also plans to enter the live-commerce and quick-commerce markets.

BY LEE JAE-LIM [[email protected]]