Aequitas Research - KAKAO CORP (35720) ... Kakao Pay IPO

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Aequitas Research

Sumeet Singh

EUR 93.06 For Business Accounts Only

Kakao Pay IPO

Kakao Pay (KP), one of South Korea’s largest payment and financial services apps, raised US$1.3bn in its South Korean IPO. Kakao held a 55% stake prior to listing, with Ant Financial holding the balance 45% stake.

As of 1H21, KP had a total of 36m users and around 20m monthly active users (MAU). It processed a total GMV of KRW66.9tn in 2020 and it had already generated KRW47.9tn GMV in 1H21 itself. As of the end of 1H21, it had dealings with more than 610,000 affiliated stores and 100 financial institutions.

We have covered most aspects of the deal in our earlier notes:
Kakao Pay IPO - Guided by Ant Financial to be a mini Ant,
Kakao Pay IPO - Peer comparison - local and international
Kakao Pay IPO - Valuation and likely Impact of latest announcement
Kakao Pay IPO - Low-end still appears reasonable but stock will more likely be driven by sentiment.
Kakao Pay IPO - Comparison with Kbank and an alternate look at valuation

In this note, we will talk about the deal's trading dynamics.

02/11/2021 6 EN

Underlyings

KAKAO CORP

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Kakao Corp.

Kakao is engaged in the provision of Internet services to its users and advertisers. Co. provides its owned and operated online properties and services for its users. Co. provides a range of tools and marketing services designed to enable businesses to reach its users for its advertisers.

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KR7035720002 Korea Stock Exchange South Korea

Provider

Aequitas Research

Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.

Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.

Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.

Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.

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Analysts

Sumeet Singh

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Kakao Pay IPO

Kakao Corp: 1 director

ECM Weekly (12th June 2022)

Kakao Pay Placement

Onewo Space-Tech Pre-IPO

Legend Biotech Follow-on Offering

Xtep International Placement

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