Ant-backed Kakao Pay jumps in debut on growth prospects

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SEOUL, Nov 3 (Reuters) - South Korea's Kakao Pay Corp (377300.KS) saw its shares treble successful worth from their archetypal nationalist offering (IPO) terms connected their trading debut connected Wednesday, arsenic the fintech's expected maturation successful transactions and different services whetted capitalist appetite.

Kakao Pay shares opened astatine 180,000 won connected the KOSPI (.KS11) versus an IPO terms of 90,000 won, and gained to 187,500 won successful aboriginal trade.

The fiscal exertion steadfast raised 1.5 trillion won ($1.27 billion) from its IPO.

China's Ant Group-backed Kakao Pay plans to usage 854 cardinal won ($724.66 million), oregon astir 56% of the funds the institution raised aft costs, for mergers and acquisitions, it said successful a regulatory filing.

Kakao Corp (035720.KS), relation of South Korea's ascendant chat app, remains a large shareholder with astir a 48% stake. Ant Group's Alipay Singapore Holding has a 39% stake, and immoderate of its shares tin beryllium traded without a lock-up period.

Having started payments work successful 2014, Kakao Pay saw yearly transactions turn from astir 48 trillion won successful 2019 to 67 trillion won successful 2020. Transactions volition apt turn sharply to astir 100 trillion won successful 2021, analysts said.

Kakao Pay had pushed backmost its IPO to November and somewhat lowered an indicative terms scope aft South Korean regulators said fiscal services level apps needed to registry oregon beryllium licensed to supply fiscal merchandise examination and proposal services. work much

"Regulation tin beryllium a caller accidental to summation much user trust," Kakao Pay main strategy serviceman Shin Won-keun told a quality league past week.

Besides raising wealth for M&A, it is besides preparing mobile banal trading services and seeking partnerships with planetary fintech companies to people imaginable overseas markets specified arsenic China, Southeast Asia and Europe, Kakao Pay said.

Outsized home retail capitalist request has fed a roar successful South Korean IPOs this twelvemonth and accrued volatility for newly-listed firms. The IPOs person raised much than 4 times the funds they did successful 2020. work much

($1 = 1,178.8900 won)

Additional reporting by Heekyong Yang; Editing by Shri Navaratnam and Jacqueline Wong

Our Standards: The Thomson Reuters Trust Principles.

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