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The Korea Herald
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THE INVESTOR
March 19, 2024

Mobile & Internet

Kakao to issue US$1b GDRs in Singapore

  • PUBLISHED :December 15, 2017 - 16:58
  • UPDATED :December 15, 2017 - 16:58
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[THE INVESTOR] Korean internet giant Kakao said on Dec. 15 it will issue global depositary receipts worth US$1 billion in Singapore next year.

About 7 million new shares will be issued at 142,500 won (US$130.83) per share. 




The newly raised cash is expected to be injected in the company’s growth engine businesses such as contents and artificial intelligence services. The company is also likely to resume M&A deals.

Because existing shareholders cannot purchase the GDRs, some key shareholders will see a fall in their stake. Kakao founder and largest shareholder Kim Beom-soo and his own company K Cube Holdings, the second-largest shareholder, own 18.46 percent and 14.65 percent shares in the company, respectively. Following the GDR issue, they could see a combined 10 percent decline in their stake.

Kakao is the first Korean firm in three year to issue GDRs. Depending on the investor reaction, more Korean firms could seek to issue shares in overseas markets.

By Lee Ji-yoon (jylee@heraldcorp.com)

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