Kakao Mobility files confidential IPO documents with SEC, targeting $1b listing

Kakao Mobility has filed a confidential draft registration statement with the US Securities and Exchange Commission for an initial public offering, it has been learned.

The filing follows the company's board approval in May of a plan to pursue a US listing, marking what industry observers describe as the execution phase of Kakao Mobility's push onto American exchanges.

According to data released Wednesday by US IPO research firm IPOX, citing a report by capital markets information provider IFR, Kakao Mobility submitted the confidential draft registration statement to the SEC in mid-June, targeting an IPO of approximately $1 billion (1.4 trillion won).

Under US IPO procedures, a confidential draft submission allows a company to undergo preliminary SEC review before formally launching its listing. Details including the offering structure and price range are expected to be disclosed after the SEC provides feedback and the company completes any required revisions.

Given that the process from a confidential draft filing to an actual listing typically takes about six months, the company could complete its US IPO as early as this year. "Filing a confidential draft registration statement with the SEC means the US IPO process has moved into the actual review stage," an industry official said.

The filing is a follow-up to actions taken by Kakao Mobility's board in the first half of this year. In May, the company established a shareholder value enhancement committee within its board and passed a resolution on "SEC registration and listing application." The board subsequently approved detailed execution plans, including costs related to an American depositary receipt listing and a board restructuring. Bank of America, Morgan Stanley and UBS were selected as underwriters.

Industry watchers say Kakao Mobility's US market push has moved beyond preparation into substantive execution.

The US listing is driven less by a need to raise fresh capital than by TPG consortium's desire, as second-largest shareholder, to exit its position by selling its stake.

The TPG consortium holds approximately 29 percent of Kakao Mobility and is the company's primary financial investor. It invested about 640 billion won ($454 million) across two rounds in 2017 and 2021. With a domestic IPO delayed for years and fund maturity extensions becoming increasingly difficult to sustain, TPG has been pursuing an exit through a stake sale and a US listing, according to industry sources.

Industry observers note that Kakao Mobility's target IPO size of approximately $1 billion is roughly in line with the estimated value of the TPG consortium's stake. The market currently values Kakao Mobility at around 5.5 trillion won, implying the TPG consortium's roughly 29 percent holding is worth approximately 1.5 trillion won.

"My understanding is that the US listing process is being pursued on the basis of the stake TPG holds in Kakao Mobility," an industry official said.

A Kakao official declined to comment, saying there was nothing the company could confirm.