South Korea’s Kakao Pay, the fintech service arm of Kakao Corp., became the 13th largest company on the KOSPI on debut by securing a market capitalization of 25 trillion won. The company is now making the second largest stock in the financial sector in Korea. Listed on the KOSPI on Wednesday, Kakao Pay surged 7.22% (13,000 won) from the opening price and ended day one of trading at 193,000 won.
Investors who were allocated Kakao Pay shares through IPO under the equal share allocations system would have earned 103,000 won per stock. The open price was set at 180,000 won, twice the initial offering price (90,000 won). Kakao Pay, however, did not reach the double of the upper limit price.
Kakao Pay secured a market capitalization of 25.1609 trillion won, landing at No. 3 in market cap, overtaking Hyundai Mobis and Krafton. Kakao Pay became No. 2 financial sector stock, getting past KB Financial Group Inc. (approximately 23 trillion won) and Shinhan Financial Group Co. (approximately 19 trillion won). Kakao Bank plunged more than 7% while yet still securing a leading stock position, placing Kakao-affiliated partners No. 1 and 2 in the financial sector stocks.
Founded in 2014 as South Korea’s first mobile payment service, Kakao Pay has been rapidly growing in size based on its connection with Kakao Talk, the country’s largest messaging app. As of the end of June, the accumulated subscribers were 36.5 million and monthly active users amount to 20 million. Kakao Pay announced that it will use the IPO proceeds to launch new services, such as a mobile securities trading service and digital non-life insurance.