The market capitalization of South Korea’s online shopping platform provider Cafe24 stretched above 1 trillion won ($926 million) as of Thursday less than two months after it debuted on the country’s secondary bourse Kosdaq under exceptional clause.
Cafe24’s stock closed Friday up 2.25 percent at 122,500 won, lifting its total market cap to 1.1 trillion won. Its price has more than doubled from its initial public offering (IPO) at 57,000 won.
Cafe24, founded in 1999, offers comprehensive e-commerce site solutions ranging from designing online shopping platforms to operating, delivery and marketing services. It was listed on the Kosdaq on Feb. 8 as the first company benefiting from the so-called Tesla act, which took effect last year to allow promising startups or small- and medium enterprises to join bourses even if they do not meet the regular capital and capacity requirements.
The company generates its biggest profit from payment fee, processing fee of 0.8 percent to 1 percent levied on every transaction. Its revenue is expected to keep rising in line with the e-commerce market growth and the payment system development, according to market analysts.
By Yoon Jin-ho and Lee Ha-yeon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]