Kakao Mobility files for $1b US IPO as TPG seeks exit
Confidential SEC filing advances listing while concerns persist over minority shareholder protection
Kakao Mobility has moved closer to a potential US stock market debut after reportedly filing confidential IPO documents with US regulators, in a listing expected to raise about $1 billion and provide an exit for its second-largest shareholder, TPG.
Citing a report by capital markets publication IFR, IPO market data provider IPOX said Thursday that Kakao Mobility submitted a draft registration statement to the US Securities and Exchange Commission in June. Bank of America, Morgan Stanley and UBS are serving as underwriters.
A confidential filing allows a company to receive initial SEC feedback before publicly disclosing details such as the offering structure and price range.
The filing places the IPO under formal regulatory review and could allow Kakao Mobility to list in the US as early as this year, industry sources said. IPOs typically take around six months from filing to listing, although the timetable can vary.
The move follows board approvals earlier in the year. In May, Kakao Mobility established a shareholder value enhancement committee and authorized an SEC registration and US listing application.
The board also approved plans for an American depositary receipt listing, associated expenses and changes to its composition, according to people familiar with the matter.
“The listing appears primarily aimed at facilitating an exit for a TPG-led consortium rather than raising fresh capital for Kakao Mobility,” an industry source said.
The consortium, Kakao Mobility’s second-largest shareholder, owns about 29 percent of the company. It invested roughly 640 billion won across two funding rounds in 2017 and 2021 but has sought an exit as its funds approach maturity and Kakao Mobility’s domestic listing remains stalled.
At an estimated corporate valuation of 5.5 trillion won, TPG’s stake would be worth about 1.5 trillion won. That is close to the reported $1 billion offering size, reinforcing expectations that the IPO would largely accommodate the consortium’s exit.
Kakao Mobility pursued a domestic IPO in 2022 but shelved the plan following allegations including preferential treatment for certain taxi drivers. It later shifted its focus to the US amid heightened scrutiny in Korea of subsidiaries seeking separate listings from their publicly traded parent companies.
Moving overseas, however, does not eliminate those concerns.
Kakao owns 57.2 percent of Kakao Mobility, and regulators have said the same shareholder-protection principles apply when the subsidiary of a listed Korean company seeks an overseas listing.
As long as Kakao retains effective control, it will need to explain how the transaction benefits Kakao’s minority shareholders and address concerns that a separate listing could dilute the parent company’s value, industry sources said.
The ownership structure is therefore expected to be central to the review. A sale of TPG’s stake alone would not resolve concerns surrounding the subsidiary listing. Investors will closely watch whether Kakao reduces its holding and whether the two companies strengthen their operational and governance independence.
The Financial Services Commission and Korea Exchange have made clear that overseas listings remain subject to the same standards intended to protect shareholders of listed parent companies.
A Kakao official said the company understood that Kakao Mobility’s US listing was being pursued as part of efforts by its second-largest shareholder to exit its investment.
ch0221@heraldcorp.com
