Kakao Pay lowers IPO price band ceiling to 90,000 won

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Kakao Pay lowers IPO price band ceiling to 90,000 won

Published: 31 Aug. 2021, 19:22 Updated: 31 Aug. 2021, 19:41

Kakao Pay has lowered the upper ceiling for its public offering price band by 6.3 percent to 90,000 won ($73).

It is planning to go public in October with the new price band.

The company had initially planned to go public in August, after submitting its registration statement in July. However, that plan had been delayed after the Financial Supervisory Service requested it revise its registration statement.

In a revised securities registration statement submitted Tuesday, the mobile payment service provider said it will be offering 17 million shares at a price band of between 60,000 won and 90,000 won. In its original statement, the company offered a price band between 63,000 won and 96,000 won.

Based on the new price band, the company is expected to raise up to 1.53 trillion won.

A major change in the company's registration statement is the list of comparable companies, which the underwriters base their valuation on.

In the original statement Kakao Pay had listed American companies PayPal Holdings and Square and Brazil's PagSeguro. In the renewed statement the company replaced PayPal and Square with Brazilian fintech company StoneCo and American lending platform operator Upstart Holdings.

Its plan to distribute shares equally to all retail investors subscribing to the initial public offering rather than allocating more to those willing to place larger deposits did not change.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]