Kakao Games said on July 24 its application for initial public offering has received the greenlight from the Korea Exchange (KRX), the nation’s sole bourse operator.
According to the South Korean game company, the KRX approved Kakao Games’ application for preliminary qualification examination for listing on the second-tier Kosdaq.
“As Kakao Games’ stocks are evaluated as blue chip stocks, the IPO will be fast-tracked, cutting the review period from 45 working days to 30 days,” a company official said.
After discussing the structure and timeline of the IPO with its lead underwriters Korea Investment & Securities and Samsung Securities, Kakao Games will submit a registration statement to Financial Services Commission and follow further IPO procedures.
This is Kakao Games’ second attempt for an IPO on the Kosdaq. The company called off its plan in 2018 due to a delay in supervision by the Korean Institute of Certified Public Accountants, a mandatory process.
Buoyed by expectations on the game industry amid the coronavirus outbreak, Kakao Games pre-IPO market value has soared recently, evaluated at 3.7 trillion won ($3.07 billion) as of Thursday compared to 1.7 trillion on June 11, when it applied for the IPO review, according to over-the-counter trading platform Pstock.
By Kim Byung-wook (firstname.lastname@example.org)