Kakao Mobility revealed on Thursday that it is exploring the possibility of listing American Depositary Receipts (ADRs) backed exclusively by the shares of its second-largest shareholder, Texas Pacific Group (TPG).
Kakao made this disclosure in response to reports of Kakao Mobility’s pursuit of a 1 billion USD initial public offering (IPO) in the U.S.
According to Kakao, Kakao Mobility has established a shareholder value enhancement committee, with TPG, the second-largest shareholder, holding a majority of seats. The company is evaluating various options for financial investors to exit their investments, including the potential issuance of ADRs secured solely by TPG’s stake in Kakao Mobility.
The committee is also considering listing ADRs based exclusively on TPG’s Kakao Mobility shares. On July 2, a confidential registration statement (Form F-1) was submitted to the U.S. Securities and Exchange Commission (SEC) regarding the proposed ADR listing.
Kakao emphasized that the board has not made any final decisions on this matter. They assured that shareholder protection would be the top priority as they proceed with necessary evaluations. At present, no specifics, including the size of the issuance, have been determined.
Earlier reports from IPOX, a U.S. IPO specialist, indicated that Kakao Mobility had confidentially filed a draft registration statement with the SEC for a 1 billion USD IPO. Bank of America (BofA), Morgan Stanley, and UBS have been selected as underwriters for the potential listing.