Kurly CEO Sophie Kim speaks at Government Complex Seoul in this November 2020 file photo. Newsis

By Park Jae-hyuk

Kurly, the operator of fresh food delivery platform Market Kurly, issued a statement, Friday, refuting a news report that the company had decided to retract its planned initial public offering (IPO) amid worsening investor sentiment.

"We have never talked with the Korea Exchange (KRX), underwriters and investors about withdrawing the IPO," Kurly said. "Since we received preliminary approval on Aug. 22 for our plan to go public, we have kept a close watch on the market conditions so as to complete the IPO before the deadline."

Once a company gets preliminary approval for its IPO, it should be listed on the stock market within six months. The online grocer is therefore supposed to go public by February next year.

Most industry officials, however, do not expect Kurly to be evaluated at over 4 trillion won ($2.8 billion), unlike the expectation of its investors, including Anchor Equity Partners. Market insiders estimate the company's value stands at around 1 trillion won as of this moment.

Kurly had once sought to be listed on the New York Stock Exchange, but it decided in July to pursue a local listing on the benchmark KOSPI, as its lower-than-expected corporate valuation forced it to scrap the ambitious plan.

"The decision was based on our judgment that it is important to share the fruits of corporate growth with our customers and suppliers here," the company said at that time. "The KRX's easing of regulations for Korean unicorn firms to encourage domestic IPOs was the reason for our latest decision."

In addition, the retailer is under prosecutorial investigation for allegations that it blacklisted some temporary workers at its logistics centers in order to fire them.

Some lawmakers unsuccessfully tried to summon Kurly CEO Sophie Kim to the National Assembly audit this month over this issue.