IPO Makes Kakaobank South Korea’s Largest Retail Lender By Market Cap
South Korea’s largest internet-only lender Kakaobank took center stage in the market on Friday in a stunning start.
On the benchmark KOSPI, the stock opened to 53,700 won, or around $ 47, already around 40% above its IPO price.
There were some ups and downs during the day, but in the end it increased from the daily limit by 30%.
By the end of Friday’s trading, Kakaobank had become the country’s largest retail lender by market value. The IPO raised its market capitalization to around $ 29 billion, making it the 11th largest company in KOSPI.
Investors rushed to get their hands on Kakaobank shares last week during the two-day subscription period before the IPO.
Offers were made by 1.9 million people, who deposited some $ 50 billion in deposits.
“I deposited one hundred million won because the company looked promising. When Kakaobank first opened it got a lot of attention, and I think it has the most accounts of them all. Korea’s mobile banks. “
But there has been some controversy over its valuation.
Some say Kakaobank is well overvalued because it is relatively small in terms of asset size and earnings, given that it has now grown into one of the largest financial institutions in the country right after its listing. But one expert said it is fundamentally different from other banks and is operating in a new industry.
“If Kakaobank’s value is traditionally valued, you should say it’s overvalued. But new industries with growth potential like Kakaobank usually have high valuations like this.”
He added that investors can expect more big IPOs in the near future, including Kakao Pay, Kakao Mobility and LG Energy Solution.
Eum Ji-young, Arirang News.