Kakao shares plunged by nearly 20 percent over the past week as it and its affiliates become the target of scrutiny by Korea's financial regulators.
KakaoBank slipped for a third day on Monday with some institutional investors offloading shares as the agreed lockup period ends.
KakaoBank's net profit in the second quarter rose 158.7 percent on year to 69.3 billion won ($59 million), the company said Tuesday.
Krafton ended its first day of trading below its IPO price, the first Kospi company to do that this year.
KakaoBank rose 12 percent Monday taking it two spots higher in Korea’s market capitalization rankings, from No. 11 when it listed Friday to No. 9.
KakaoBank finished its first day of trading up 79 percent, making it Korea’s most valuable financial company.
KakaoBank is suffering from analyst reports that its initial public offering (IPO) prices are too high, even as it ended its two-day public subscription period Tuesday.
KakaoBank’s initial public offering (IPO) price was set at 39,000 won ($33.92) per share, the upper end of the range despite a heated debate over valuation.
KakaoBank’s IPO pricing is justified, CEO Yun Ho-young insists, even though the relatively young venture will be the third largest financial institution in the country upon listing.
Three big initial public offerings (IPOs) are happening from the end of this month through the first week of August.