Kakao Bank, South Korea’s first internet-only bank to go public, surged over 70% in its trading debut in Seoul, becoming the country’s largest retail lender by market value.
The digital lender has raised 2.6 trillion won ($2.3 billion) in its initial public offering (IPO), offering 65 million shares. Its shares opened up 37.7% from its IPO price of 39,000 won per share, continuing to surge to 68,000 won per share by late morning. At 30.4 trillion won, KakaoBank has secured top place amongst financial companies on the KOSPI index by market value.
The digital lender is successfully competing with established rivals by offering customers quick and straightforward financial services through its mobile app. As of March 2021, KakaoBank had 16.2 million customers and 13.4 million monthly active users.
KakaoBank’s stock market debut is South Korea’s largest IPO since Netmarble went public in 2017. Analysts predict a minimum of 20 trillion won will be raised in 2021.
