Record High Demand with 2,585 Trillion Won in Subscription Forecast... Competition Ratio at 1,733 to 1
[Asia Economy Reporter Minwoo Lee] KakaoBank's IPO price has been set at the top end of the desired range, 39,000 KRW. More than 2,500 trillion KRW in funds poured in during the demand forecast, marking the largest amount ever for an IPO. It is expected to become the number one financial stock by market capitalization immediately after entering the stock market.
KakaoBank announced on the 22nd that the IPO price was confirmed at 39,000 KRW following the demand forecast conducted with domestic and foreign institutional investors until the previous day. This was decided at the top end of the desired IPO price range (33,000 to 39,000 KRW). The market capitalization immediately after the IPO is 18.5289 trillion KRW. This alone ranks third among financial stocks, following KB Financial Group (21.5389 trillion KRW) and Shinhan Financial Group (19.8633 trillion KRW) based on the closing price that day. If the opening price rises just 16.3% compared to the IPO price, it will become the number one financial stock by market capitalization.
Out of a total of 65.45 million new shares, 35.9975 million shares (55%) were allocated to institutional investors. A total of 1,667 institutions (1,287 domestic and 380 overseas) applied for 62.377436 billion shares. The simple competition rate was 1,733 to 1, marking the second highest record in the history of the KOSPI market.
The total order volume reached 2,585 trillion KRW, surpassing the previous record of 2,417 trillion KRW set by SK IE Technology (IET). All participating institutions offered prices at or above the top end of the desired IPO price range, 39,000 KRW.
The quantity of shares applied for by institutions participating in the lock-up agreement, ranging from a minimum of 15 days to a maximum of 6 months, accounted for 45% of the total application volume.
As of the first quarter, KakaoBank has established itself as a mobile bank used by 16.15 million users. It also ranked first in the financial mobile app sector with 13.35 million monthly active users (MAU). Going forward, it plans to innovate the entire financial sector by leveraging its strong platform and the Kakao ecosystem.
Meanwhile, KakaoBank will accept public subscription applications from general investors over two days, on the 26th and 27th. 16.3625 million shares, accounting for 25% of the total volume, have been allocated. Half of these will be distributed equally, and the other half proportionally. Subscriptions can be made through the lead underwriter KB Securities and the underwriting companies Korea Investment & Securities, Hana Financial Investment, and Hyundai Motor Securities. However, duplicate subscriptions or double subscriptions using more than two subscription places or multiple accounts are not allowed. After this general subscription process, Kakao Securities will be listed on the KOSPI market on the 6th of next month.
Yoon Ho-young, CEO of KakaoBank, said, "We deeply thank the institutional investors who resonated with KakaoBank's growth potential and differentiated strategy," adding, "We hope for interest and support in the general public subscription, where we can meet more prospective shareholders."
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