South Korean payments startup Kakao Pay filed an updated prospectus and will move forward with an initial public offering (IPO), making its debut on the Korea Composite Stock Price Index (KOSPI) exchange on Oct. 14.
The company will offer 17 million shares as previously planned but with an adjusted price range of 60,000 won to 90,000 won ($51 to $77) versus a previous 63,000 to 96,000 won ($54 to $82). Kakao is anticipating raising up to 1.53 trillion won ($1.321 billion) at the upper limit of the price range, the startup said in a press release on Tuesday (Aug. 31).
The main underwriters for the IPO are Samsung Securities, JP Morgan and Goldman Sachs, with co-underwriter Daishin Securities. Korea Investment & Securities and Shinhan Investment are serving as syndicate members.
Kakao Pay CEO Alex Ryu said that Kakao Pay is Korea’s largest online payment service and offers digital payments, money transfers, insurance, loans and asset management.
“We are pursuing innovative challenges through cooperating with about 130 financial service providers,” Ryu said.
He added that the company serves over 36.5 million users, and it intends to continue building out its offerings while also boosting shareholder value “based on its extensive usability, connectivity and expandability.”
Kakao Pay has grown total payment volume (TPV) to 47.3 trillion won ($41 billion) in the first half of this year, up 62% year-on-year, according to the press release. Digital payment TPV is up 82% compared to last year and also increased financial services TPV twelve-fold, per the release.
Backed by Ant Group and headquartered in Pangyo, the FinTech startup is one of many South Korean companies that filed for public offerings this year. Coupang’s $4.6 billion debut on the New York Stock Exchange (NYSE) took place in March.
Kakao Bank went public in South Korea earlier this month. Gaming firm Krafton is still putting final plans together for its debut. Kakao Mobility and Kakao Entertainment — affiliates of Kakao Pay’s parent Kakao Corp. — are looking to go public next year, PYMNTS reported.