The chances of internet-only bank Kbank debuting on the KOSPI have increased. Sentiment from the book-building for institutional investors was seen as not bad. Compared with the plan to withdraw the listing after weak demand forecasting in 2024, sentiment is viewed as improved.
On the 11th, according to the investment banking (IB) industry, Kbank management planned to meet with the underwriting syndicate, including NH Investment & Securities and Samsung Securities, to finalize the offering price. The company conducted book-building for institutional investors for a listing on the Korea Exchange's main board (KOSPI) from the 4th through the previous day.
For now, the tone is positive. Domestic and overseas institutional investors participated, and order prices were reportedly evenly distributed at the lower and upper ends of the desired price range (8,300–9,500 won). This contrasts with October 2024, during the second listing attempt, when many orders were at or below the floor.
Analysts said the lower valuation worked in its favor. Based on the desired price range, Kbank's expected market capitalization after listing is between 3.3672 trillion won and 3.8541 trillion won, a discount of more than 1 trillion won compared with the roughly 5 trillion won target when it pushed for a 2024 listing.
In addition, the number of shares in the offering was reduced from 82 million to 60 million. A securities industry official said, "Many institutional investors were participating for a second time following the October 2024 book-building," and added, "As Kbank adjusted both valuation and volume, sentiment was good."
Market conditions also worked in Kbank's favor. In this IPO, Kbank selected KakaoBank and Japan's internet bank Rakuten Bank as peer companies to assess its valuation. Notably, KakaoBank's share price rose about 27% after Kbank filed its securities registration statement.
Meanwhile, Kbank plans to announce the final offering price on the 12th. It will take general subscriptions for two trading days from the 20th to the 23rd. If all goes as planned, Kbank will list on the KOSPI on the 5th of next month. After listing, Kbank will step up lending to small and medium-sized enterprises (SMEs).