South Korea’s second online-only bank Kakao Bank seeks to bolster paid-in capital by 500 billion won ($467.6 million) through right issues to broaden its financial business.

The bank led by the country’s top messaging platform operator Kakao Corp. said Wednesday that 200 billion won would be in common shares and 300 billion won in preferred shares.

This would be its second offering to its shareholders after the 500 billion won issuance last September upon business launch. The non-dilutive recapitalization scheme would boost its paid-in capital to 1.3 trillion won. The proceeds would be used to fund new services, the company said.

Existing shareholders would be given a number of shares proportionate to their current ownership. The payment must be made by April 25.

The bank’s capital adequacy ratio, the minimum ratio under the Basel III standard, was 13.7 percent as of late last year, higher than the recommended 8 percent. Its loans stood at 5.51 trillion won and savings 6.47 trillion won, with customers numbering 54.6 million as of February.

Kakao Bank was launched in July 2017 on initial capital of 300 billion won. Under the Korean banking law, a non-financial firm can own only up to 10 percent in a banking affiliate, which is why the parent company Kakao only holds a 10 percent stake in the bank. The largest shareholder is Korea Investment Holdings Co. with a 58 percent stake.

By Oh Chan-jong and Kim Hyo-jin

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