Kakaopay Corp. had a volatile stock-market debut in South Korea on Wednesday, soaring in the initial minutes only to later surrender most of those gains.
Shares of the South Korean fintech company affiliated with internet group Kakao Corp.
opened at 180,000 Korean won ($153), compared with the IPO price of KRW90,000.
The stock then jumped to KRW230,000 but couldn’t sustain the rally. It was 3.3% higher at KRW186,000 in mid-morning trade.
Despite its somewhat lackluster debut, Kakaopay’s estimated market capitalization reached about KRW24 trillion ($20 billion), exceeding that of South Korea’s top lender KB Financial Group Inc.
Before listing, the company raised $1.3 billion via an IPO and said it would use the proceeds to purchase stakes in other companies to expand its busines.
The company aims to become “a one-stop platform for all digital financial services” after listing in South Korea.
Kakaopay’s debut had been delayed due to regulators’ call for revising its listing document, which reflected tougher rules for tech companies.
Kakao Corp., which operates the most popular messaging app in South Korea, owns a 55% stake in Kakaopay.