SEOUL, February 24 (AJP) - Kbank, South Korea’s first internet-only lender, has attracted more than $7 billion in pre-initial public offering deposits as it prepares to become the first major IPO of 2026 on the KOSPI, the world’s best-performing equity market this year.
The bank wrapped up a three-day pre-IPO offering to retail investors on Monday, posting a subscription competition ratio of 136 to 1. About 9.85 trillion won ($7.3 billion) in deposits were raised, with 836,599 subscription accounts recorded.
Kbank priced its shares at 8,300 won, the lower end of its indicative range of up to 9,500 won during institutional bookbuilding. The band was lowered by about 20 percent from the 12,000 won level set during its second failed IPO attempt in September last year.
The listing is being led by NH Investment & Securities and Samsung Securities, with Shinhan Securities participating as a co-underwriter.
Under agreements with its financial investors tied to a capital increase, Kbank is required to go public by July at the latest.
Failure to do so would trigger put option clauses, exposing the bank to potential repurchase obligations.
Kbank’s long-term performance remains uncertain despite the heated demand on the main bourse.
Concerns center on potential share dilution by major shareholders and the bank’s heavy dependence on Korea’s largest cryptocurrency exchange, Upbit, whose exclusive partnership with Kbank expires in October.
More than 90 percent of Kbank’s loan portfolio is concentrated in household lending, reinforcing criticism that the bank remains largely confined to a “non-face-to-face retail lender” model.
Its earnings structure also remains vulnerable. About 84 percent of operating revenue in 2024 came from net interest income, reflecting heavy reliance on lending margins. Fee-based income — a key pillar of non-interest revenue — remains weak, with around 35 percent generated through its partnership with Upbit and its operator Dunamu.
Investor sentiment has also been dampened by the weak performance of industry peer KakaoBank.
Brokerage firms have recently lowered their target prices for KakaoBank. Daishin Securities, for instance, cut its target to 26,000 won, reflecting a more cautious outlook for the sector.
Market analysts warn that the sluggish performance of the industry’s flagship player is undermining the broader appeal of internet-only banks.
KakaoBank shares closed Monday at 28,250 won, up about 29 percent so far this year, underperforming gains of roughly 37 percent for banking heavyweight KB Financial Group and about 40 percent for the benchmark KOSPI over the same period.
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