Kakao Bank to sell ￦250 billion stake to Anchor Equity

Kakao Bank, one of two internet-only banks in Korea, is issuing new shares worth 250 billion won ($226 million) to Hong Kong-based private equity fund Anchor Equity Partners in its preparation to secure capital for its imminent initial public offering (IPO).

The bank’s board approved Tuesday evening the decision to issue 10.64 million shares costing 23,500 won per share.

Anchor Equity Partners, founded in 2012, has been active in investment in Korean firms including JB Financial Group, Kakao Page, Twosome Place and Kakao M.

The private equity firm is expected to pay for the new shares by Dec. 7.

Kakao Bank’s board last month has agreed to issue new shares worth 750 billion won, a third of which have been sold to San Francisco-based hedge fund TPG Capital.

TPG completed its payment of stocks worth 250 billion won on Nov. 12. The remaining 50 billion won of shares, which have been purchased by existing shareholders, will be paid by Dec. 29.

If the transactions are completed, the bank’s paid-in capital will total 2.83 trillion won by the end of this year.

“The company’s IPO is going ahead as planned,” the bank said in a statement Tuesday.

“We are planning to receive proposals for the IPO from brokerage firms in and outside of Korea within this month and select the lead underwriters.”

Kakao Bank is seen as one of the biggest IPO deals in Korea scheduled for next year's first half. As the only profit-making internet bank in Korea, its net worth was valued at 8.58 trillion won before issuing the new shares.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]