KakaoBank files for an IPO, to raise up to 2.55 trillion won

KakaoBank registered with the Financial Services Commission on Monday to go public.

KakaoBank registered with the Financial Services Commission on Monday to go public.

The internet-only bank will sell 65.45 million new shares priced between 33,000 won ($29.21) and 39,000 won.

If the upper end of the range is hit, 2.55 trillion won will be raised and the company’s market capitalization will be 18.5 trillion won.

The bank could very well become the largest listed financial institution in the country.

KB Financial Group's market capitalization is 23.8 trillion won and Shinhan Financial Group’s is 21.6 trillion won.

The main underwriters for the deal are KB Securities and Credit Suisse. Public subscription will take place for two days from July 26. The company will start trading on the Korea Exchange in August.

The bank is currently 31.62 percent owned by Kakao, 26.97 percent by Korea Investment Value Asset Management and 9.3 percent by KB Kookmin Bank.

Kakao will have 27.26 percent of the shares after the listing.

The bank started operations in 2017. It posted a net loss of 20.95 billion in 2018, and in 2019 it reported 13.73 billion won in net income. Its net income jumped by 728 percent to 113.64 billion won in 2020.

In the first quarter this year, the company posted 46.66 billion won in net profit, up 153 percent on-year.

At the initial public offering price, the company will be trading at about a 90 price-earnings ratio compared to about an 18 for the Kospi.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]