Kakao Corp. announced that it would officially launch its two units, KakaoBank and KakaoPay, on the Korea Composite Stock Price Index (KOSPI) this coming August. The two Kakao affiliates’ trading debut also attracted industry watchers, encouraging them to monitor their initial public offerings (IPO).
In particular, KakaoBank, Kakao’s Internet-only banking app operator, recently revealed that its KOSPI IPO would take place sometime in August. Following KakaoBank’s debut, KakaoPay, Kakao’s mobile financial service platform operator, would list its shares on the same bourse.
After receiving preliminary IPO approval from the Korea Exchange, KakaoPay presented its registration statement to South Korea’s Financial Supervisory Service.
Investment banking industry sources also revealed that KakaoPay seeks to finish the entire IPO process to adhere to the US Securities and Exchange Commission’s (US SEC) foreign investor 135-day regulation.
Moreover, KakaoPay would offer 17 million shares and price them between 63,000 to 96,000 won per share. If the company attains the price band’s upper limit, its IPO could raise 1.6 trillion won ($1.4 billion).
KakaoPay evolved into a well-established, market-leading financial platform only four years since its establishment as an independent company in 2017. KakaoPay also achieved outstanding growth thanks to its diverse financial offerings, including loans, insurances, investments, wealth management, and more.
Furthermore, an EBest Investment analyst, Sung Jong-Hwa, noted that KakaoPay has been making significant market growth through operating online payment platforms and other related financial services.
Sung also said that KakaoPay’s continuous growth and IPO could accelerate future online platforms, including digital insurances and mobile share trading. This year, KakaoPay plans to introduce mobile trading systems to its investment operations and establish a digital non-life insurance business.
Meanwhile, KakaoBank’s IPO aims to raise around 2.6 trillion won ($2.3 billion), with its share prices ranging from 33,000 and 39,000 won. Similar to KakaoPay, KakaoBank would list its shares in South Korea’s main bourse.
According to industry watchers, the two Kakao units’ back-to-back IPOs demonstrate Kakao’s determination to earn a combined 4 trillion won. Similarly, Kakao’s price shares have recently been increasing due to the fast-growing fintech platform market demand.
Additionally, Kakao aims to accelerate its affiliates’ trading debuts to address the pandemic-caused steep digital financial service market growth. Kakao would also expand business offerings and increase acquisitions to solidify its future business basis, speeding up its advancement.
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