K Bank is betting on a more conservative price in its third initial public offering attempt, lowering the offering price from earlier plans as it seeks to complete a listing. With the IPO priced cautiously and peer KakaoBank’s share price improving, attention is on whether K Bank can succeed this time.
K Bank said in a regulatory filing Thursday that it set the final offering price at 8,300 won, the bottom of its indicated range. A total of 2,007 institutions took part in the book-building process, applying for about 6.55 billion shares, for a subscription ratio of about 199-to-1. Total orders were valued at about 58 trillion won.
The price is about 20% lower than in its previous IPO attempt, reflecting market demand. K Bank set the price range at 8,300 won to 9,500 won, valuing the company more conservatively. The bank previously withdrew two listing attempts, citing weak demand and market volatility.
For this third try, K Bank also sharply reduced the deal size. It cut the number of shares offered from 82 million to about 60 million, lowering the expected market capitalization from about 4 trillion won to around 3 trillion won. The move is aimed at reducing the burden on investors and improving the chances of a successful offering.
Market conditions have also improved. KakaoBank shares, cited as a comparable company, have risen about 30% since K Bank filed its securities registration statement, closing the previous day at 28,050 won. Investor sentiment toward internet-only banks has also been recovering.
With the price set, K Bank will move into the main offering process. It plans to take retail subscriptions on Feb. 20 and 23 and list on the Korea Exchange’s main board on March 5.
Choi Woo Hyung, K Bank’s CEO, said, “I thank investors who sympathized with K Bank’s vision,” adding, “Even after listing, we will become a bank that grows together with both customers and shareholders.”
* This article has been translated by AI.
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