Korea Post, KakaoBank Stake Sold for 1 Trillion Won... 'Successful Exit'

[Asia Economy Reporter Park So-yeon] The Korea Post has successfully completed a block deal of its 2.9% stake in KakaoBank, securing liquidity exceeding 1 trillion won. Despite the shock from the Goldman Sachs report the previous day, the exit was successful with participation from domestic and international institutional investors.

According to the investment banking industry on the 2nd, immediately after the market closed the previous day, the demand forecast for institutional investors on the 2.9% stake (13,680,383 shares) held by the Korea Post showed a discount rate traded around 9.9%. As a result, the Korea Post secured a lump sum of 1,094,430,640,000 won.

The initially proposed discount rate per share by the sale underwriter was between 9.9% and a maximum of 13.9% compared to the previous day's closing price (88,800 won). The block deal sale was underwritten by Citi Global Markets Securities.

The competition rate for the KakaoBank block deal reached 5:1, and it is reported that the entire amount was absorbed at the lowest discount rate of 9.9%. The bookbuilding participants are estimated to be 20% domestic institutions, 30% global long-only funds, and 50% hedge funds.

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