Tue, Jun 26, 2018 - Page 12 News List

PChomestore shareholders approve privatization plan

By Ted Chen  /  Staff reporter

PChomestore Inc (商店街) shareholders yesterday approved the company’s privatization plan as expected, with many remaining optimistic about tapping into greener fundraising pastures abroad.

The Taiwanese consumer-to-consumer (C2C) e-commerce platform has racked up massive losses to fund free shipping subsidies during a war of attrition with rival Shopee Taiwan Co (樂購蝦皮) in the past year.

Following its departure from the Taipei Exchange (TPEX), the company is now looking to stage an initial public offering in Japan, the US or Hong Kong, PChomestore general manager Su Yun (蘇芸) said.

PChomestore shares were unlisted from the TPEX at the end of trading on Friday last week.

“The company is seeking to raise NT$4.5 billion [US$148.01 million] and will begin the application process next quarter,” Su said.

PChomestore could be relisted abroad as soon as the second half of next year, Su said.

PChomestore has been hamstrung by its smaller war chest, Su said, adding that its capitalization on the TPEX was only about NT$1.5 billion.

By contrast, Japan’s Mercari Inc, a C2C platform primarily focused on selling used goods, has achieved a capitalization exceeding NT$200 billion since its debut on the Tokyo Stock Exchange on Tuesday, Su said.

Taiwan’s capital markets are unable to reflect PChomestore’s value, with the company’s monthly sales averaging about NT$4 billion compared with Mercari’s NT$10 billion, Su said.

The company’s home market remains important to PChomestore and its parent company, PChome Online Inc (網路家庭) would remain the company’s biggest shareholder, Su said.

Looking ahead, the C2C platform would look to expand abroad in markets such as Thailand, as well as bringing sellers from Japan, the US and Europe to Taiwanese consumers to distinguish itself from Shopee Taiwan, which lists mostly Chinese products, a policy that has resulted in varying levels of customer satisfaction, Su said.

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