Kakao Pay’s Seoul IPO raises US$1.3B at top of range

Kakao Pay, the largest digital payments platform in South Korea, has raised US$1.28 billion through an initial public offering (IPO) valued at the top of its range. The details of this new development surfaced in various reports Friday (Oct. 22).

The firm’s 17 million shares sold at 90,000 won (about US$76) per share after an initial announcement set a 60,000 won ($51) to 90,000 won each bracket for the shares. 

Before two months ago when the firm cut its target by 6%, the firm’s shares were planned to go for 96,000 won (US$81) per share. 

Founded back in 2014 in Jeju, Cheju-do, South Korea, and with the backing of Ant Group, the financial technology company initially planned to go public on the Korea Stock Exchange (KRX) this month but has now rescheduled its listing date for Nov. 3.

In July, regulators directed Kakao Pay to review its prospectus. Its sister company, KakaoBank recorded Korea’s second-largest IPO raise earlier this year – US$2.3 billion. 

Holding firm and mobile messaging provider Kakao Corp. holds a 55% stake in Kakao Pay, while Ant Group’s Alipay holds a 45% stake, according to the filing.