Korea's first app-based lender Kbank to stick to IPO plan for the summer

[Source: Kbank]

South Korea’s first app-based lender Kbank is sticking to the plan of going public on the Kospi around August despite bearish market conditions that have scared other candidates to cancel their IPOs.

Kbank will file for a preliminary IPO review with the Korea Exchange as early as this month. If the IPO process pans out as expected, the listing could be set for late August.

NH Investment & Securities, Citigroup Global Markets, and JP Morgan are joint lead underwriters.

Kbank, founded in 2015, has been licensed as the first mobile-only bank in Korea. Its growth however was laggard compared with second player Kakao Bank.

But its fortune has improved during crypto frenzy after it joined up with Upbit, Korea’s No.1 cryptocurrency exchange.

According to data submitted to the national policy committee of the National Assembly, 5.56 trillion won ($4.5 billion), or nearly half of Kbank’s deposits worth 11.54 trillion won ($9.28 billion), were for crypto trade at Upbit as of the end of March.

Its largest shareholder KT has decided to push ahead with the IPO while the bank is making strong growth.

Its net profit in the first quarter ended March was 24.5 billion won, exceeding full-year net profit of 22.5 billion won last year.

The bank also has to keep to its promise to its strategic financial investors Bain Capital, MBK Partners, JS PE, and Shinhan Asset Management. In return for 1.25 trillion won worth equity sale, it promised to complete IPO by 2023.

Kbank’s value is estimated at 10 trillion won, given that its shares are traded at 17,400 won apiece on the over-the-counter market. Considering the number of outstanding shares, its market cap is around 6.53 trillion won.

Market prospects however are not rosy. Kakao Bank shares ended Thursday at 39,850 won, almost at its IPO pricing of 39,000 won before its debut in August last year..

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