K Bank Attempts IPO for the Third Time... Expected to File for Preliminary Listing Review This Month

K Bank has entered final preparations for its third initial public offering (IPO) attempt. It is holding last-minute negotiations with major financial investors (FIs) over an appropriate company valuation.

According to the investment banking (IB) industry on the 15th, K Bank is expected to file a preliminary listing review with the Korea Exchange as early as this month. It aims to list on the Korea Exchange's main market early next year. With most of the work for listing completed, the company, underwriters, FIs and other stakeholders are in final discussions over the offering structure and the offering amount.

MBK Partners, Bain Capital and MG Community Credit Cooperative are participating as major FIs in K Bank. During K Bank's listing attempt in November last year, they indicated they would find it difficult to agree to a listing unless a company valuation of at least 4 trillion won was recognized. Since K Bank posted a record-high net profit of 68.2 billion won in the second quarter of this year, they are reportedly expecting a similar level of company valuation this time as well.

On the other hand, the company and the underwriters are leaving room to lower the valuation to improve the chances of a successful offering. This is because the previous two listing attempts failed. The recent slump in the stock price of KakaoBank, a competitor and an important comparable company, is also a burden. KakaoBank's share price hit a 52-week high of 38,750 won in June but has since fallen and is trading in the 25,000-won range this month. Other variables include tightened household loan regulations, such as renewed restrictions on mortgage lending, and the expiration of the partnership with cryptocurrency exchange Upbit in October. An IB industry source said, "If the two sides cannot narrow their differences, it may be postponed until after Chuseok," adding, "Finding a realistic compromise will be key, given this is the third attempt."

Seok-chul Choi Reporter dolsoi@hankyung.com