Expected 20 Trillion... KakaoBank Starts IPO 'Engine'

[Asia Economy Reporter Kiho Sung] Internet-only bank KakaoBank is expected to list on the KOSPI market as early as July.

The Korea Exchange announced on the 15th that it has received KakaoBank's preliminary review application for KOSPI listing. KakaoBank's listing is the first in over 27 years since Industrial Bank of Korea in 1994 under the banking industry category.

The Korea Exchange must disclose the results within 45 business days after receiving the preliminary review application, and the review results are expected by June. Companies that pass the preliminary review must list within six months. After passing the review, they proceed with submitting a securities registration statement, followed by institutional demand forecasting and public subscription.

If all procedures go smoothly, KakaoBank is expected to enter the KOSPI market as early as July. The lead underwriters are KB Securities and Credit Suisse. Citigroup Global Markets Securities is the joint underwriter.

KakaoBank was established in January 2016, with its largest shareholder Kakao holding a 31.6% stake. Last year, its operating profit was 122.6 billion KRW, and net profit was 113.6 billion KRW.

In the securities industry, it is forecasted that KakaoBank's market capitalization will reach 20 trillion KRW upon listing.