South Korean mobile messenger operator Kakao has announced that it has secured USD 1 billion in foreign investments. Following the announcement on 15 December 2017, Kakao held roadshows in Singapore, Hong Kong, New York, London, Boston, San Francisco with the goal of raising investment by issuing global depository receipts (GDR) to overseas institutional investors. With potential investors showing overwhelming interest, investor meetings totaled 55 sessions, instead of the originally planned 36, the company said. Kakao will now proceed with the GDR issue process and the new shares will be listed on the Singapore Exchange in early February.
Based on closing prices for 17 January, Kakao has priced the GDR offering, a total of 8.26 million new shares, at KRW 129,004 (approximately USD 121.04) per share, which represents a discount of 3.7 percent.
Kakao is expected to pursue M&As with global content platforms, with particular focus in mobile content businesses, including game, comics, music and video. The company will also seek out investment opportunities involving artificial intelligence and other emerging technologies.
