Kakao Pay IPO set to be priced at top end of $76 apiece

[Photo by Kakao Pay Corp.]

The scaled-back and delayed IPO of Kakao Pay Corp. is set to be priced at the top end of 90,000 won ($76) apiece as it drew eager demand from institutions despite ongoing overvaluation issue and regulatory move that could curb its fintech business expansion.

The competition rate among institutions was estimated to top 2,000 to one in the two-day bookbuilding session that closed on Thursday, with most bidding above the top end of a target pricing range of 60,000 won to 90,000 won. More than 70 percent subscribed for a lockup.

The heat was unexpected, given the recent tepid IPO demand due to lackluster stock market. Market watchers projected institutions rushed to pick up the Kakao name due to absence of big names in the IPO pipeline for the remainder of the year.

Kakao Pay rapidly expanded business on the back of its parent Kakao. The company¡¯s market cap would be placed at 11.73 trillion won at the top end, leaving it to be similar in size with Doosan Heavy Industries, S-Oil, and Posco Chemical.

Public subscriptions will take place on Oct. 25 and 26 before Kospi debut on Nov. 3.

Shares of Kakao were trading 1.6 percent lower at 126,000 won as of 9:40 a.m. Friday.

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