Kbank, an internet-only bank making its third attempt to list, drew nearly 10 trillion won in deposits for the retail tranche of its initial public offering.
On the 23rd, Kbank said it conducted the retail investors' public subscription for two trading days from the 20th through that day, securing 985 billion won in deposits (based on a provisional tally that does not exclude duplicate subscriptions).
A total of 2,374,120,000 shares were applied for against an allotment of 17,640,000 shares. The competition rate was tallied at 134.6 to 1.
Kbank made two attempts to list in 2021 and 2024 but tasted defeat. In particular, in 2024 it had to withdraw the listing due to weak demand forecasts.
Analysts said the lowered valuation worked in its favor. Kbank proposed a post-listing valuation of about 3.8 trillion won, more than 1 trillion won lower than the roughly 5 trillion won it targeted when it pursued a listing in 2024.
Earlier, in the book-building for institutional investors held from the 4th to the 10th of this month, it posted a competition rate of about 199 to 1. The offer price was set at 8,300 won, the bottom of the indicated range.
Through this listing, Kbank will secure the capacity to expand new loans by more than about 10 trillion won with the proceeds from the offering. Based on this, it plans to speed up innovative finance.
Choi Woo-hyung, Kbank's chief executive, said, "After listing, we will accelerate innovative finance with the proceeds and do our best to enhance shareholder value through steady growth."
Meanwhile, after payment on the 25th, Kbank is slated to debut on the Korea Exchange's main board (KOSPI) on the 5th of next month. The lead underwriters are NH Investment & Securities and Samsung Securities, and the underwriting syndicate includes Shinhan Investment & Securities.