Seoul’s Kakao Pay IPO Raises $ 1.3 Billion
South Korea’s largest digital payment platform Kakao Pay raised $ 1.28 billion in an initial public offering (IPO) at the highest price in its range, according to several reports released Friday, October 22.
The company’s 17 million shares sold for 90,000 won ($ 76) per share after previous marketers pegged the shares at 60,000 won ($ 51) at 90,000 won each. Shares were originally slated to hit 96,000 won ($ 81) per share, but the company slashed its target by 6% two months ago.
Launched in 2014 in Jeju, Cheju-do, South Korea and backed by Ant Group, the payments company initially hoped to go public on the Korea Stock Exchange (KRX) this month, but now plans a listing date of November 3.
In July, Kakao Pay was ordered by Korean regulators to revise its prospectus.
See also: South Korea’s Kakao Pay Delays $ 1.3 Billion IPO Due to Regulatory Issues
Its sister company, KakaoBank, raised $ 2.3 billion in Korea’s second IPO this year. The holding company and mobile messaging service Kakao Corp. holds a 55% stake in Kakao Pay, while Ant Group’s Alipay has a 45% stake, according to the filing.
The region’s antitrust watchdog, Financial Supervisory Service, had scrutinized Kakao and its affiliates, and regulatory risk for Kakao Corp needed to be adequately addressed before the public offerings could proceed.
Kakao Pay sells a wide range of financial products but has suspended insurance services in order to comply with guidelines set out by the country’s regulators.
Read more: Digital Bank S. Korean Kakao Becomes Largest Lender In Epic Trading Debut
“Greater regulation of internet companies is a global trend that has intensified in China and started recently in South Korea,” wrote Bloomberg Intelligence analyst Marvin Chen in a memo ahead of Kakao’s IPO. Pay.
The main underwriters of the transaction are Samsung Securities, JP Morgan and Goldman Sachs.
You may also enjoy: Apple could face payment rules investigation in South Korea
Changes to South Korea’s telecommunications law last month could shine the regulatory spotlight on Apple on whether the US iPhone maker is in compliance with the region’s latest payment mandates.