Kakao Pay IPO: Offering Detail & Valuation Issues

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<p>Kakao Pay is offering 17 million shares in the IPO at the price range of 63,000 won to 96,000 won per share. The IPO deal size range is from $948 million to $1.4 billion. According to the bankers' valuation, the expected market cap range would be from 8.6 trillion won to 13.0 trillion won.</p>
<p>At the high end of the market cap range (13.0 trillion won), this would represent the 31st largest market cap in KOSPI. Samsung Securities, Goldman Sachs, and JP Morgan are the lead underwriters of this IPO. </p>
<p>According to the company, it plans to use 381 billion won of the IPO proceeds in business operations/working capital. It plans to use the remaining 680 billion won in IPO proceeds for M&amp;A purposes. </p>
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<td style="width: 214pt;"><div>Deal Specifics of the Kakao Pay IPO:</div></td>
<td style="width: 292pt;"> </td>
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<td>Lead underwriters of the IPO: </td>
<td style="width: 292pt;">Samsung Securities, Goldman Sachs, JP Morgan, Daishin Securities</td>
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<td>Expected IPO price per share: </td>
<td style="width: 292pt;">63,000 won (low)/96,000 won (high)</td>
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<td>Number of Shares for IPO:</td>
<td style="width: 292pt;">17m shares (new shares)</td>
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<td>IPO base deal size: </td>
<td style="width: 292pt;">US$948 mn (low);  US$1,444 mn (high)</td>
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<td>Expected common shares outstanding, fully diluted (post-IPO):  </td>
<td style="width: 292pt;">135.9m shares</td>
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<td>Expected market cap after IPO:</td>
<td style="width: 292pt;">8,562 billion won (low)/13,046 billion won (high)</td>
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<td>Book open: </td>
<td style="text-align: left; width: 292pt;">29-Jul-21</td>
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<td>Book closed:</td>
<td style="text-align: left; width: 292pt;">20-Jul-21</td>
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<td>Listing date: </td>
<td style="text-align: left; width: 292pt;">12-Aug-21</td>
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<td>Source: Company data</td>
<td style="width: 292pt;"> </td>
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Kakao Pay is offering 17 million shares in the IPO at the price range of 63,000 won to 96,000 won per share. The IPO deal size range is from $948 million to $1.4 billion. According to the bankers' valuation, the expected market cap range would be from 8.6 trillion won to 13.0 trillion won.
At the high end of the market cap range (13.0 trillion won), this would represent the 31st largest market cap in KOSPI. Samsung Securities, Goldman Sachs, and JP Morgan are the lead underwriters of this IPO. 
According to the company, it plans to use 381 billion won of the IPO proceeds in business operations/working capital. It plans to use the remaining 680 billion won in IPO proceeds for M&amp;A purposes. 







Deal Specifics of the Kakao Pay IPO:
 


Lead underwriters of the IPO: 
Samsung Securities, Goldman Sachs, JP Morgan, Daishin Securities


Expected IPO price per share: 
63,000 won (low)/96,000 won (high)


Number of Shares for IPO:
17m shares (new shares)


IPO base deal size: 
US$948 mn (low);  US$1,444 mn (high)


Expected common shares outstanding, fully diluted (post-IPO):  
135.9m shares


Expected market cap after IPO:
8,562 billion won (low)/13,046 billion won (high)


Book open: 
29-Jul-21


Book closed:
20-Jul-21


Listing date: 
12-Aug-21


Source: Company data
 




Kakaopay

Kakao Pay IPO Preview