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Coupang’s $3.6 Billion IPO Shows U.S. Is King for Tech IPOs

(Bloomberg) — South Korean e-commerce giant Coupang Inc.’s initial public offering is on track to be the largest listing by a Korean company in a decade. And, like most of the major tech offerings these days, it’s happening in New York.There are three big reasons that explain why the U.S. is a better pick for the e-tailer backed by SoftBank Group Corp.’s Masayoshi Son. Perhaps most significantly, New York offers a considerable valuation premium. It also has a deeper, more liquid market, and allows uneven voting rights that would benefit Coupang’s founder, Harvard Business School drop-out Bom Kim.The U.S. has been the destination of choice for mega tech IPOs, with 2020’s biggest debuts Airbnb Inc. and DoorDash Inc. both listed in New York. Chinese e-commerce giants such as Alibaba Group Holding Ltd. and JD.com Inc. also went public there. Coupang is seeking to raise up to $3.6 billion in its IPO and could garner a value of more than $50 billion. That would make it the largest float by a Korean company since Samsung Group took its insurance unit public at home in 2010.Had the loss-making e-commerce firm listed in Korea — which from this month will allow unprofitable companies to go public — Coupang could have fetched a maximum valuation of just $10 billion, according to Suh YongGu, a marketing professor at Sookmyung University.“The history of capitalism in South Korea is short, so Koreans don’t ascribe high valuations to loss-making companies,” said Suh.South Korea’s stock market is less than 70 years old, and is dominated by chaebols, or family-controlled industrial groups. In fact, SK Bioscience Co., a unit of SK Group, one of the county’s largest chaebols, will be the latest to have a stock market presence when it goes public this month. The maker of AstraZeneca Plc’s Covid-19 vaccine for Korea, is seeking to raise $1.3 billion ahead of its March 18 listing, according to Korean-language Seoul Economic Daily Monday.Korean investors’ appetite for their homegrown entrepreneur-led startups, however, will be tested in coming months with IPOs by Krafton Inc., the creator of hit game PUBG, and the country’s biggest mobile-only bank Kakao Bank. Unlike Coupang, those firms are profitable.Coupang has lost money in the last three years, recording an accumulated deficit of $4.12 billion as of December, according to its filing. Thanks to the surge in online shopping during the pandemic, however, it managed to nearly double its revenue to $12 billion last year.A $51 billion valuation would put Coupang among the five most valuable companies in Korea, of which Samsung Electronics Co. is the biggest. Korea’s other big startups with growing clout in e-commerce — the $58 billion Internet conglomerate Naver Corp., and the $39 billion messaging app Kakao Corp. — are both listed in Seoul, but were both profitable when they went public. The two are backed by entrepreneurs and not linked to the chaebols like Samsung Group.In fact, Coupang’s listing in the U.S. will allow it to exceed the combined market value of the six chaebol-owned retailers trying to expand their presence in e-commerce — E-Mart Inc., Lotte Shopping Co., GS Retail Co., Shinsegae Inc., BGF Retail Co., and Hyundai Department Store Co..Liquidity is another allure of the U.S. market, allowing companies to raise funds frequently through secondary share sales. Korea’s stock market, at a total value of $2.12 trillion, is a fraction of the $44.2 trillion of the U.S., according to Bloomberg data.“It’s easier for investors to exit” their stakes in the U.S., said Seo Sang-Young, an analyst at Kiwoom Securities in Seoul. “And the trading volume is much larger.”And finally, a U.S. listing gives founders more power.Korea doesn’t allow uneven voting rights, favored by tech firms like Alphabet Inc. and Facebook Inc., who see it as a way for founders to focus on the long-term. But the U.S. does, even if the ownership structure is itself not without controversy, as it lacks shareholder protections. Kim, Coupang’s 42-year-old founder, will end up with 76.7% of the company’s voting rights with just 10.2% of its outstanding shares.“We would have liked Coupang to list in Korea,” said Kim Sung-gon, a spokesperson at Korea Stock Exchange. “But we respect the company’s choice.”Korea IPO Boom Year Kicks Off With Coupang FloatStill, missing out on the chance to buy into one of the country’s hottest companies in the biggest Asian company IPO since Alibaba Group Holding Ltd.’s $25 billion New York listing in 2014 is rankling the retail investors who have come to dominate Korea’s stock market since the pandemic spread.“There is certainly regret among retail investors that they cannot buy into the IPO,” said Kim DongJoo, the CEO of Iruda Discretionary Investment, a Seoul-based investment firm catering to retail investors seeking to buy foreign stocks.Largest IPOs by Korean Companies:Coupang prides itself on its same-day or at least pre-dawn deliveries. It is also giving its warehouse staff and 15,000 full-time delivery workers a total of $90 million in pre-IPO stock, a unique largess that comes at a time when the deaths of a string of couriers from overwork as online orders soared is causing a national uproar.“We believe we are the first company in Korea to make our front-line employees stockholders,” Kim said in a letter to shareholders in Coupang’s IPO filing.Five Coupang warehouse workers have died in the past year, according to the Korean Confederation of Trade Unions, a major labor organization. On Saturday, a Coupang delivery driver was found dead in an incident which Yonhap News said showed symptoms his colleagues attributed to overwork.Coupang said in a statement on Monday that the deceased worker had “worked around four days a week on average and worked about 40 hours for the past 12 weeks.” It added, however, that it would “make efforts to thoroughly protect the health and safety of workers.”(Updates with Coupang’s statement on a worker’s recent death in the last two paragraphs)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

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Canada’s Telesat takes on Musk and Bezos in space race to provide fast broadband

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By Steve Scherer

OTTAWA (Reuters) – Canada’s Telesat is racing to launch a low-earth-orbit (LEO) satellite constellation to provide high-speed global broadband from space, pitting the satellite communications firm founded in 1969 against two trailblazing billionaires, Elon Musk and Jeff Bezos.

Musk, the Tesla Inc CEO who was only a year old when Telesat launched its first satellite, is putting the so-called Starlink LEO into orbit with his company SpaceX, and Amazon.com Inc, which Bezos founded, is planning a LEO called Project Kuiper. Bezos also owns Blue Origin, which builds rockets.

Despite the competition, Dan Goldberg, Telesat’s chief executive officer, voices confidence when he calls Telesat’s LEO constellation “the Holy Grail” for his shareholders – “a sustainable competitive advantage in global broadband delivery.”

Telesat’s LEO has a much lighter price tag than SpaceX and Amazon’s, and the company has been in satellite services decades longer. In addition, instead of focusing on the consumer market like SpaceX and Amazon, Telesat seeks deep-pocketed business clients.

Goldberg said he was literally losing sleep six years ago when he realized the company’s business model was in peril as Netflix and video streaming took off and fiber optics guaranteed lightning-fast internet connectivity.

Telesat’s 15 geostationary (GEO) satellites provide services mainly to TV broadcasters, internet service providers and government networks, all of whom were growing increasingly worried about the latency, or time delay, of bouncing signals off orbiters more than 35,000 km (22,200 miles) above earth.

Then in 2015 on a flight home from a Paris industry conference where latency was a constant theme, Goldberg wrote down his initial ideas for a LEO constellation on an Air Canada napkin.

Those ideas eventually led to Telesat’s LEO constellation, dubbed Lightspeed, which will orbit about 35 times closer to earth than GEO satellites, and will provide internet connectivity at a speed akin to fiber optics.

Telesat’s first launch is planned in early 2023, while there are already some 1,200 of Musk’s Starlink satellites in orbit.

“Starlink is going to be in service much sooner … and that gives SpaceX the opportunity to win customers,” said Caleb Henry, a senior analyst at Quilty Analytics.

Starlink’s “first mover” advantage is at most 24 months and “no one’s going to lock this whole market up in that amount of time,” Goldberg said.

Telesat in 2019 signed a launch deal with Bezos’ aerospace company Blue Origin. Discussions are ongoing with three others, said David Wendling, Telesat’s chief technical officer.

They are Japan’s Mitsubishi Heavy Industries Ltd, Europe’s ArianeGroup , and Musk’s SpaceX, which launches the Starlink satellites. Wendling said a decision would be taken in a matter of months.

Telesat aims to launch its first batch of 298 satellites being built by Thales Alenia Space in early 2023, with partial service in higher latitudes later that same year, and full global service in 2024.

‘SWEET SPOT’

The Lightspeed constellation is estimated to cost half as much as the $10 billion SpaceX and Amazon projects.

“We think we’re in the sweet spot,” Goldberg said. “When we look at some of these other constellations, we don’t get it.”

Analyst Henry said Telesat’s focus on business clients is the right one.

“You have two heavyweight players, SpaceX and Amazon, that are already pledging to spend $10 billion on satellite constellations optimized for the consumer market,” he said. “If Telesat can spend half that amount creating a high-performance system for businesses, then yeah, they stand to be very competitive.”

Telesat’s industry experience may also provide an edge.

“We’ve worked with many of these customers for decades … That’s going to give us a real advantage,” Goldberg said.

Telesat “is a satellite operator, has been a satellite operator, and has both the advantage of expertise and experience in that business,” said Carissa Christensen, chief executive officer of the research firm BryceTech, adding, however, that she sees only two to three LEO constellations surviving.

Telesat is nailing down financing – one-third equity and two-thirds debt – and will become publicly traded on the Nasdaq sometime this summer, and it could also list on the Toronto exchange after that. Currently, Canada’s Public Sector Pension Investment Board and Loral Space & Communications Inc are the company’s main shareholders.

France and Canada’s export credit agencies, BPI and EDC respectively, are expected to be the main lenders, Goldberg said. Quebec’s provincial government is lending C$400 million ($317 million), and Canada’s federal government has promised C$600 million to be a preferred customer. The company also posted C$246 million in net income in 2020.

Executing the LEO plan is what keeps Goldberg up at night now, he said.

“When we decided to go down this path, the two richest people in the universe weren’t focused on their own LEO constellations.”

($1 = 1.2622 Canadian dollars)

(Reporting by Steve Scherer in Ottawa; Editing by Matthew Lewis)

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$600K donation to boost online mental health programming in Nova Scotia

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Nova Scotia Health’s mental health and addictions program hopes to offer more online support to people across the province after receiving a significant donation this week.

The QEII Foundation announced that RBC is contributing $600,000 toward the province’s e-mental health programming.

“It’s particularly important for the current time under all the strains of COVID,” said Dr. Andrew Harris, a psychiatrist and the senior medical director for the program.

The plan for online programming has been in the works for years, he said, but the pandemic expedited the push. Last June, the department launched a number of applications that can be used to help those with anxiety, depression and addictions.

Since then, as many as 3,000 Nova Scotians have used the site to access mental health services.

“There’s a persistent difficulty in accessing services,” Harris said of traditional models in Nova Scotia. He said those who don’t need intensive therapy may find the support they need through the online programs.

He uses the example of someone who can’t take time off work to speak to a clinician.

“It’s better for them to be able to access a service after hours or on the weekend. So our e-mental health services are tailored a little bit to meet that need.”

Calls to crisis line increase

Harris said the province’s mental health crisis line continues to see a 30 per cent increase in calls for help, so he’s trying to raise awareness that services can be accessed immediately online.

“I think everyone is aware that for a lot of people it’s much easier to talk about a physical illness than a mental illness. So there’s an allowance there for privacy, for some anonymity but still making available things that can help the person who is struggling in the community.”

The online portal has a list of programs that people can use, covering things like reducing stress, solving problems and becoming mindful. It mirrors a site in Newfoundland and Labrador that Harris said is used to help people in remote areas.

Harris said the donation from RBC will be used to continue to evaluate more services, and pay for the licensing of the products that are mostly developed by other organizations.

He encourages anyone who is struggling to test out the site, and use it as an entry point into the mental health system.

“It’s important for people to acknowledge when they’re struggling. It happens to all of us through our lives in different times.”

Anyone in Nova Scotia looking to access the tools can visit: https://mha.nshealth.ca.

Source:- CBC.ca

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Samsung’s cheapest 5G Galaxy phones yet are launching this month

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Samsung

If you buy through our links, we may earn money from affiliate partners. Learn more.

  • Samsung is launching five new phones in its Galaxy A series this month.
  • Three of them will support 5G connectivity, and the most expensive phone is just $500.
  • The cheapest phone of the five still has three cameras but lacks 5G and other features.
  • See more buying advice on the Insider Reviews homepage.

Samsung may be best known for its high-end Galaxy S phones that rival the iPhone. But the tech giant is proving that it can appeal to cost-conscious customers with the launch of five new smartphones in the United States, the priciest of which only costs $500.

Samsung’s new lineup of budget phones, which debuted in other markets before coming to the US, are all launching this month. Some of them will be released as soon as this week, while the least expensive model will debut on April 29. The launch comes as competitors like Apple and Google have also been focusing on cheaper smartphones to boost sales.

Three of these new Samsung devices also support 5G, another sign that shoppers no longer have to pay a premium to get access to next-generation wireless networks. All five of the new phones also have the traditional headphone jack for wired listening and run on an octa-core processor.

Here’s a look at the new Samsung Galaxy A series phones that will be launching soon.

Samsung Galaxy A52 5G

Galaxy A52 5G_Awesome Black_Front_Back



Samsung

  • Release date: April 9
  • Price: $499.99

The Galaxy A52 5G is the most expensive smartphone of the bunch. It comes with a 6.5-inch FHD+ screen and a quad-camera system that includes some of the same features as Samsung’s more expensive Galaxy S phones. These include Single Take, which creates several different photos or video clips with different effects with a single press of the shutter button.

Its screen can also boost its refresh rate up to 120Hz for smoother scrolling and performance, a feature that has become common on pricier flagship phones but is rare on cheaper models. It’s also the only phone in this A-series lineup to include Samsung’s notch-free screen design.

Samsung Galaxy A42 5G

Galaxy A42 5G_Prism Dot Black_Front_Back



Samsung

  • Release date: April 8
  • Price: $399.99

The less expensive Galaxy A42 5G has a slightly larger screen than the A52 5G, but scales back on certain features when it comes to the camera and screen refresh rate.

Still, it has a triple-lens camera with high-resolution sensors, and like its pricier sibling it also supports Single Take.

Samsung Galaxy A32 5G

GalaxyA32 5G_Awesome Black_Front



Samsung

Release date: April 9

Price: $279.99

The Galaxy A32 5G is Samsung’s cheapest 5G smartphone to date. It has a large 6.5-inch screen, but it’s made from an LCD panel instead of Super AMOLED. That means it will likely lack some of the contrast and boldness of Samsung’s other devices. But Samsung hasn’t skimped on the camera considering this model has a quad-lens main camera, which is rare if not unheard of at that price.

Samsung Galaxy A12

Galaxy A12_Black_Back



Samsung

Release date: April 9

Price: $179.99

Samsung’s Galaxy A12 doesn’t come with 5G support, but it still gives you a lot for the price. For less than $200, you’re getting a quad-lens camera and a large 6.5-inch LCD screen. But remember this phone only has 32GB of storage, so it’s best suited for those who don’t store a lot of photos and videos on their device.

Samsung Galaxy A02s

Galaxy A02s_Black_Front



Samsung

  • Release date: April 29
  • Price: $109.99

The Galaxy A02s is Samsung’s cheapest phone, offering a 6.5-inch LCD screen and three main cameras. It doesn’t have 5G support or as much computing power or camera prowess as Samsung’s other A-series phones, but that’s to be expected for a device at this price. This phone is truly for those who just need the basics and little else.

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Disclosure: This post is brought to you by the Insider Reviews team. We highlight products and services you might find interesting. If you buy them, we get a small share of the revenue from the sale from our commerce partners. We frequently receive products free of charge from manufacturers to test. This does not drive our decision as to whether or not a product is featured or recommended. We operate independently from our advertising sales team. We welcome your feedback. Email us at reviews@businessinsider.com.

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Source:- Business Insider

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