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South Korea’s online-only Kakao Bank under big technology firm Kakao Corp. is expected to debut on main Kospi market in July to deliver the first bank entry in 27 years.

The Korea Exchange, the country’s main bourse operator, announced Thursday Kakao Bank submitted an application for preliminary review for its initial public offering (IPO). Given the fact that it normally takes about two months for document review, the online-only bank is expected to go public as early as in July.

It would make the first bank stock after Industrial Bank of Korea in 1994.

Kakao Bank was founded as internet-only lender in January 2016. Its parent Kakao is the largest shareholder with a 31.6 percent stake.

Since beginning operation in July 2017, the bank turned out a profit in 2019.

Last year, it posted 122.6 billion won ($109.52 million) in operating profit, with both interest and non-interest revenue in the black. Its net profit surged more than eight times on year to 113.6 billion won.

As of March, Kakao Bank’s deposit reached 25.39 trillion won and loan 21.6 trillion won. It has more than 16 million registered users.

Considering its business scope and earnings, Kakao Bank could be worth 10 to 20 trillion won according to the investment banking industry. Its shares were traded at 85,500 won apiece in the over-the-counter market on Thursday, making its market capitalization at 34.8 trillion won.

Kakao Bank has tapped KB Securities Co. and Credit Suisse as its lead underwriters, while Citigroup Global Market Securities is serving as a co-underwriter.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]