 |
| The headquarters of K bank in central Seoul / Courtesy of K bank |
By Anna J. Park
 |
| K bank CEO Suh Ho-sung / Courtesy of K bank |
The bank made the decision earlier this week, five days before the deadline for submitting a prospectus for its IPO procedure. The internet-based lender passed the preliminary evaluation for the IPO at the Korea Exchange (KRX), the country's bourse operator, on Sept. 20 last year, and the effect of the preliminary round remains valid for six months.
"K bank has decided not to push forward to go public during the remaining effective period since its preliminary assessment last fall," K bank said. "Considering various external and internal environmental factors as well as impaired investment sentiments, K bank will not raise an IPO this time," the bank continued.
K bank's suspension of its IPO plan has been somewhat predicted, as the bank didn't submit its investment memorandum for overseas investors in early January. Market watchers view the key reason behind the decision to be the excessive fall of the bank's corporate value to some 4 trillion won ($3.2 billion), compared to its earlier market value reaching up to 8 trillion won.
Another factor that has led the mobile-based bank to put off its IPO plan is that it continues to post solid revenue growth since 2021. The bank made a successful turnaround in 2021, posting an annual net profit of 22.4 billion won, compared to the previous year's annual net loss of 105.4 billion won. The lender logged a cumulative net profit of 71.4 billion won during the first three quarters of 2022.
Based on such strong growth momentum, K bank aims to go public again, when the market situation becomes favorable.
"The bank will continue to prepare itself for the IPO so that it can push through the public offering procedure, whenever the bank's growth, profitability and innovative capabilities are being appropriately evaluated," an official from the bank explained.
Amid chilly market sentiments, many major IPO candidates, including Kurly, Golfzone Commerce and Hyundai Engineering, have stalled on IPO plans since late last year.
