K Bank IPO Preview

• K Bank finally provided its IPO prospectus which includes more details of the IPO than what the company already announced about the IPO several days ago.

• Bankers used KakaoBank, SBI Sumishin Net Bank, and Bancorp Inc as comps. Average PBR of 2.56x was used to value K Bank.

• Some investors will question the inclusion of overseas comps including SBI Sumishin Net Bank and Bancorp in the valuation of K Bank.

K Bank finally provided its IPO prospectus which includes more details of the IPO (including how the bankers priced the deal and industry analysis) than what the company already announced about the IPO several days ago.

The IPO price range is from 9,500 won to 12,000 won. The company is offering 82 million shares (50% new shares and 50% old shares) in this IPO. The IPO deal size is 779 billion (US$579 million) to 984 billion won (US$732 million). If the IPO price is set at the upper end of the band, half of 984 billion won, or 492 billion won, will go to K Bank.

The book building for the local institutional investors will last from 10 to 16 October. The book building for the overseas investors will last from 2 to 16 October. The listing date is 30 October.

According to the bankers' valuation, the expected market cap of the company is from 4.0 trillion won to 5.0 trillion won. NH Investment Securities, KB Securities, and BoA (Bank of America) are the lead underwriters of this IPO.