Kakao to raise $2.3 billion from IPO

South Korea’s Kakao is aiming for something huge with its IPO.

Kakao’s app on a mobile phone

Kakao Bank is a South Korean money lending company that was founded in 2016 as a subsidiary of Kakao Talk, South Korea’s largest mobile messenger service which had over 46 million users at the time.

Kakao Bank has decided to sell 65.45 million shares at 33,000 to 39,000 won per unit with the sole aim of generating $2.3 billion from its initial public offering (IPO).

This could result in the company’s market capitalization surging by over $16 billion as well as the third most valuable money lending company in Korea.

Financial analysts have predicted that if Kakao is able to hit its IPO goal, its shares will surge by more than 20% due to foreign investments.