Kakao Pay hits historic low on overhang issue

2022.05.02 13:27:55 | 2022.05.02 15:36:27

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Kakao Pay Corp. shares were among major losers for overhang issue ahead of the removal of lockup period on institutional holding.

According to the Korea Securities Depository on Sunday, 107.5 million shares of Kospi-listed four companies and 167.7 million shares of Kosdaq-listed 36 stocks are due to be released in the market upon the expiration of their lock-up period this month.

The number of shares that are set to hit the market in May after the lock-up expiry is up 21.6 percent compared to the previous month of 226.29 million shares.

Institutions and stakeholders are restricted in divesting initial or secondary offering for a certain period under lockup arrangement.

Kakao Pay’s 76.25 million shares, or 57.55 percent of its outstanding shares, become free to be released upon its lockup expiry on Tuesday. Of them 13.89 million are held by existing shareholders including Ali Pay which own 38.68 percent in Kakao Pay.

Shares of Kakao Pay closed down 4 percent to fresh low of 108,000 won since it joined the Kospi at 180,000 won, doubled from its initial price of 90,000 won, on Nov. 3. The stock has been on downhill after peak at 258,500 won on Nov. 30.

Mason Capital and Sem CNS shares in 52 million and 35.72 million issues respectively are also free to be released this month.

Mason Capital and Sem CNS closed down 3.06 percent to 793 won and 1.31 percent to 6,030 won, respectively.

Stocks with large proportion shares under lock-up are B2En with a ratio of 75.56 percent, Sem CNS with 71.23 percent, and Kakao Pay with 57.55 percent.

By Kim Geum-yi and Susan Lee

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