Kbank completes blueprint for IPO through new stock issuance

Kbank headquarters in Seoul / Courtesy of Kbank

Kbank is accelerating final preparations to debut on the country’s main KOSPI exchange by the end of the year.

The nation’s first internet-only bank received approval in a preliminary listing review by the Korea Exchange on Aug. 30, passing the first hurdle for its initial public offering (IPO).

The firm then announced Monday it decided to issue 41 million new shares to increase paid-in capital.

It is cited as the most anticipated IPO scheduled for the second half of this year, as it is expected to be the largest since LG Energy Solution’s listing in early 2022. At the time, the battery maker raised a total of 12.75 trillion won ($9.5 billion) through its IPO.

The total number of shares Kbank plans to offer in its IPO is 82 million, with the ratio of new shares to be issued to the sale of existing shares set at 50:50.

The offering price range is expected to be between 9,500 won and 12,000 won per share.

Currently, the bank has about 375 million outstanding stocks, and with the issuance of additional shares, the number will increase to some 416 million.

If the upper end of the offering price range is applied, the company’s market capitalization is expected to exceed 5 trillion won.

The subscription period is scheduled for Oct. 21 to 22, with the expected listing date set for Oct. 30.

Established in January 2016, the lender began operations as the first internet-only bank on April 1, 2017.

BC Card is the largest shareholder, with a 33.7 percent stake, while other shareholders include Woori Bank and NH Investment & Securities.

The lead underwriters for the listing are NH Investment & Securities, KB Securities and Bank of America.

This is the bank’s second push to list its shares on the local stock market. In 2022, it attempted to do so but scrapped the plan in February 2023, citing a decline in corporate value amid a subdued investment environment at the time.

Securities companies and industry experts are expressing optimism for the bank’s second IPO push as the company posted a net profit of 85.4 billion won in the first half of this year, which was the highest since its establishment and more than three times higher than last year’s earnings.

“The listing on the KOSPI market will serve as a stepping stone for our continued growth,” a Kbank official said. “We will continue to expand our business foundation, aiming to practice inclusive and innovative finance.”