South Korea’s internet-only Ok financial institution will postpone its inventory market debut to subsequent yr, attributable to inadequate demand.
On Friday, Ok financial institution introduced it’s pushing again its preliminary public providing, which was initially scheduled for Oct. 30, to early subsequent yr. The financial institution additionally disclosed that it has filed to withdraw its securities registration with the Monetary Providers Fee.
Ok financial institution acknowledged in its disclosure, “The corporate has determined to withdraw this public providing, with the outcomes of the current institutional investor demand forecast indicating inadequate demand for a profitable itemizing.”
The corporate mentioned it plans to regulate its providing construction and quantity, aiming for a relaunch early subsequent yr, revising their resolution primarily based on the demand expectations gathered from the current forecast.
Initially anticipated to be one of many yr’s greatest market debuts, Ok financial institution deliberate to drift 8.2 million shares by means of the IPO, with a goal value vary set between 9,500 gained and 12,000 gained ($6.90-$8.80) per share. The providing was anticipated to lift 1 trillion gained, giving Ok financial institution a market cap of 5 trillion gained postlisting.
Latest experiences point out that the IPO underwriters, NH Funding & Securities and KB Securities, urged Ok financial institution decrease its minimal goal value to eight,500 gained following a disappointing two-week demand forecast that concluded Wednesday.
This marks the second time Ok financial institution has delayed its market debut. In 2022, the financial institution handed the preliminary analysis for itemizing and started preparations, however scrapped the plan in February 2023 attributable to a subdued funding setting.
A Ok financial institution official mentioned, “We are going to promptly pursue a relisting after bettering the providing construction and can work to make sure that the corporate’s worth is correctly acknowledged all through the itemizing course of.”
