South Korea’s app-based lender Kbank has decided to scrap the plan of going public on the Kospi market this year as it expects it will be difficult to receive the right valuation during a market slump.

“We had reviewed the appropriate time to list shares while observing market conditions and IPO schedules but we decided not to push forward the listing within the effective period after preliminary approval given the chilled investor sentiment,” Kbank said on Thursday.

Shareholders including KT Corp. and BC Card are also known to have agreed on the delay.

Kbank received preliminary approval for IPO from Korea Exchange in September last year. The approval is effective until March 20, which means that the online lender should submit a securities registration statement by Feb. 7.

Industry insiders note that Kbank’s decision came as there is no need to proceed with the listing when its value is at below 4 trillion won ($3.3 billion), far lower than 8 trillion won when it announced to go public.

Shares of its listed rival KakaoBank Corp. have also plummeted to 28,100 won on Thursday, which is below the offering price of 39,000 won.

“We will continue IPO preparations and seek an appropriate time for resumption,” said an unnamed official from Kbank.

There is growing uncertainty, in the meantime, in the country’s IPO market as companies like Kbank and Kurly Inc., operator of dawn delivery service provider Market Kurly, put off IPOs.

“Companies are concerned about not being able to be valued properly in a sluggish stock market and liquidity shortage environment,” said an unnamed official from an investment bank.

Oasis Corp., an e-commerce company, will be the only big-size stock to join the secondary Kosdaq market earlier on in the year. Oasis will hold a book building session on Feb. 7 and 8 and receive public subscriptions on Feb. 14 and 15. NH Investment & Securities Co. and Korea Investment & Securities Co. are lead managers for the IPO.

By Cho Yun-hee and Choi Jieun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]