K Bank has been planning an IPO for several years. In September 2022, it passed the preliminary evaluation for a listing on the KRX. However, in February 2023 it officially decided to halt the procedure, citing suboptimal market conditions that contributed to a decline in its valuation. The Korean digital lender resumed the IPO process this year, applying for a preliminary listing review with the Korea Exchange on June 28.
One challenge for K Bank as it prepares for an IPO is that it has become somewhat dependent on cryptocurrency for growth, which may prompt heavy regulatory scrutiny. It is estimated that K Bank currently has about 5 trillion won (US$3.6 billion), in deposits from South Korean crypto exchange Upbit – so about 20% of overall deposits.
Korea’s Kyobo Securities estimates that if successful, the IPO will boost K Bank's loan balance capacity by between 9.5 trillion won and 13.7 trillion won.
Additionally, the securities firm predicts that following the IPO, K Bank’s capital adequacy ratio (currently 13.9%), will improve by about 7 to 11 percentage points. This will enhance the capacity for expanding loan volume and broaden opportunities for new investments, supporting long-term growth.
Some analysts expect K Bank’s market valuation to swell to 5 trillion won after the IPO. In this case, some observers say that it could not only surpass HD Hyundai Marine Solutions (3.7071 trillion won), which was listed on the stock market in May, but also become the largest deal of the year.