(image: Yonhap)
SEOUL, July 27 (Korea Bizwire) — South Korean internet-only bank Kakao Bank Corp. drew a tepid response from retail investors for its initial public offering (IPO), with deposits for the stock offering at a smaller-than-expected 58.3 trillion won (US$50.5 billion), according to its IPO managers Tuesday.
During the two-day subscription, the subscription rate stood at 182.7:1 for shares allocated for retail investors.
Kakao Bank’s IPO is one of this year’s mega IPO deals.
Last week, Kakao Bank set its public offering price at 39,000 won, hoping to raise 2.55 trillion won via its listing on the main bourse on Aug. 6.
The subscription deposit is far smaller than those of other big-name companies that went public this year, such as SK IE Technology Co. and SK Bioscience Co., which raised 80.9 trillion won and 63.6 trillion won in subscription deposits during the same time span, respectively.
The lower-than-estimated deposit came as subscriptions to brokerage houses are banned, in contrast to the cases for SKIET and SK Bioscience.
Also, there has been controversy over the overvaluation of the IPO price.
Via the IPO, Kakao Bank’s capitalization may reach 18.6 trillion won upon the market debut, far higher than some 13 trillion won for Hana Financial Group Inc. and about 8 trillion won for Woori Financial Group Inc. — two of South Korea’s four major financial holding firms.
Kakao Bank, led by Kakao Corp., operator of the country’s dominant messaging app KakaoTalk, has gained popularity among mobile-savvy customers in recent years thanks to its around-the-clock service and convenience.
(Yonhap)
