Kakao Bank /Photo = Yonhap News
Kakao Bank, an internet-specialized bank, completed a paid-in capital increase worth KRW 1 trillion. While preparing for listing next year, the corporate value was estimated at about 9.3 trillion won.
According to banknotes on the 30th, Kakao Bank recently completed a paid-in capital increase of KRW 1 trillion, which was resolved through the board of directors in late October and mid-November.
Through this capital increase, TPG Capital of the United States, the world’s four largest private equity fund managers (PEF), and Anchor Equity Partners, a Hong Kong-based private equity fund, will participate as new shareholders.
Each of the two private equity funds is worth 250 billion won. Existing shareholders also paid their shares on the 29th of the 500 billion won allocated.
Kakao, the existing largest shareholder, has lowered its stake from 33.54% to 31.78%. The major shareholders who made Kakao Bank together with Kakao, Korea Investment & Securities Group, Korea Investment Value Asset Management and Korea Investment Financial Group, will have 27.1% and 4.67% stakes, respectively. Kookmin Bank’s stake also decreased from 9.86% to 9.35%. The shares of Seoul Guarantee Insurance, Post Office, eBay Korea, and Tencent declined from 3.94% to 3.74%, respectively. TPG Capital and Anchor Equity Partners will each hold 2.61%.
While Kakao Bank is preparing for an IPO for the second half of next year, attention is paid to how much corporate value it will make its debut on the stock market. The issue price per share of this capital increase is 23,500 won. The value was approximately 4.5 times higher than the face value (5,000 won), and the total corporate value was estimated at about 9.2 trillion won. At the current stock market, Kakao Bank’s listing value is estimated at around 10 trillion won. The market capitalization of KB Financial, the number one banking stock, is 18 trillion won and the second-largest Shinhan Financial Group (16 trillion won) is less than that of Hana Financial Group (10,283.3 billion won). The stock price of Kakao Bank recently traded through the over-the-counter market is 70~80,000 won per share. The total corporate value is about 30 trillion won, three times the market cap after listing in the securities industry.
Kakao Bank expects that the equity capital ratio of the Bank for International Settlements (BIS), which is 14% as of the end of the third quarter, will rise to around 20% through this capital increase. Capital increased to 2,383 trillion won and paid-in capital to 2,825.6 billion won. An official at Kakao Bank said, “Through this increase, we will improve our ability to absorb losses and expand loans to mid- and low-credit users.”
Reporter Daehoon Kim [email protected]
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