Dunamu, Naver Financial to Form IPO Committee Within a Year of Share Swap

Dunamu, the operator of South Korean crypto exchange Upbit, and Naver Financial plan to push ahead with an initial public offering within a year after completing their share swap.

Dunamu said in a regulatory filing on April 15 that Naver, Dunamu and related parties signed an investor agreement on the same day they executed the share-swap contract. Under the agreement, the parties agreed to use their best efforts to promptly list Naver Financial shares on a securities market after the swap is completed. They also agreed to set up an IPO committee for Naver Financial within one year of the transaction.

If Naver Financial has not gone public by the fifth anniversary of the share-swap completion date, the listing period may be extended by as much as two years, according to the filing. Naver will secure voting rights in Naver Financial through the investor agreement, and Naver Financial will remain a consolidated subsidiary of Naver.

Oh Kyung-seok, Dunamu's chief executive officer, referred to the IPO plan at the company's annual shareholder meeting late last month. Once the deal is completed, the company will actively pursue a listing, he said at the time, adding that it has not decided whether the offering will take place in South Korea or overseas.