K Bank, a South Korean neobank that has seen rapid growth thanks to its cryptocurrency business, is set to conduct an initial public offering (IPO).
On March 10, an unnamed financial sector official said the K Bank board had approved the move.
The bank is now reportedly aiming to be listed “on the Korea Composite Stock Price Index (KOSPI) stock market within the year.”
K Bank – A South Korean Crypto Success Story?
According to news outlet Viva100, the company is banking on “expected gains” from the “recent increase in interest in Bitcoin” among cryptocurrency-enthusiast South Korean retail investors.
K Bank provides “real-name” banking services (fiat currency on-ramp and off-ramp) to Upbit, the largest cryptocurrency exchange in the United States.
Since then, cryptocurrency accounts have become popular, and accounts associated with Upbit still account for a large portion of the bank’s revenue.
During previous BTC bull runs, K Bank saw rapid growth in customer sign-ups. As Bitcoin continues to break all-time price records, the bank appears confident of further gains.
The outlet noted that new CEO Choi Woo-hyung, a digital finance expert, recently took over at K Bank and created a "positive internal and external environment for IPO preparations."
More Korean Crypto IPOs Coming?
The outlet claims that the new bank approached “major securities firms” earlier this year.
In February, the bank reportedly “selected NH Investment & Securities, KB Securities and Bank of America (BofA) as preferred negotiating partners.”
The outlet also claimed that the bank has begun an “internal recruitment process” to form a dedicated “IPO team”.
The bank’s previous attempt to go public in South Korea ended in disappointment. K Bank passed KOSPI’s initial listing screening test as it seeks an IPO in 2022.
However, the bank was derailed by the stock market crash in 2022. The market downturn forced it to effectively shelve its plans for February 2023.
Late last year, Upbit’s closest competitor, Bithumb, unveiled plans for its own IPO. With retail investors returning to the market in large numbers, the trading platform and its bid could see a boost as the price of bitcoin continues to climb.
At the height of the 2021 BTC bull run, South Korean market analysts claimed that Upbit operator Dunamu was planning to follow Coonbase to the New York Stock Exchange.
