Fintech platform operator Viva Republica revives IPO plan

Viva Republica Inc., the operator of South Korea’s fintech platform Toss, has revived plans to go public after pushing back its stock market debut planned for this year amid expectations of interest rate cuts.  

It recently sent requests for proposals to major brokerage companies to select IPO underwriters with a plan to list on the Korea Exchange late next year or 2025, according to people familiar with the matter on Wednesday.

It hopes its corporate value would climb to 10 trillion won ($7.7 billion) from the 8.9 trillion won estimated last year when it raised 700 billion won in a pre-IPO, less than its target of over 1 trillion won.

Its founder and Chief Executive Lee Seung-gun owns 15.57% of the company. Two US-based venture capital firms -- Goodwater Capital and Altos Ventures -- hold an 11.58% stake and an 8.62% stake, respectively.

Viva Repubilca is traded on the over-the-counter market for unlisted stocks at a valuation of 7.2 trillion won as of Wednesday.

That is about one-fourth of the 30 trillion won reached at the end of 2021, when it was poised to become South Korea’s fourth decacorn, or private company backed by venture capital with a valuation of over $10 billion.

“Considering the sharp fall in the share prices of its peer companies, its corporate value could recover to the 10 trillion won range after only two years,” said an investment banking source.

After being listed, Viva Republica is looking to list its subsidiaries Toss Bank, Toss Pay and Toss Securities as was the case for Kakao Corp., the country’s dominant mobile platform.

Early this year, Toss Bank raised 285 billion won through a rights offering at a valuation of 2.4 trillion won. Hana Bank, Hanwha Investment & Securities and Eland World, a clothing retailer, have invested in the newly issued shares.

Viva Republica, established in 2013, has sprawled into internet banking, insurance and securities, as well as online payment, to grow into a fintech giant in South Korea.

In the face of soured investor sentiment following interest rate hikes between last year and early this year, other leading online platforms have delayed IPOs.

Among them are South Korea’s top travel and accommodation platform Yanolja Co. and Dunamu, the operator of the cryptocurrency trading exchange UPbit.

The share price of KakaoBank Corp. has taken a nosedive after its public offering in 2021. Its market value has more than halved to 12.5 trillion won from its peak of 30 trillion won.

The corporate value of another fintech platform Kbank has slid to 3.7 trillion won in the OTC market, compared to the previous estimate of 8 trillion won.

Write to Ye-Jin Jun at ace@hankyung.com
 

Yeonhee Kim edited this article.