Kakao Corp.: Kakao Mobility files ADR plan with U.S. Sec

Kakao Mobility Corp., the operator of South Korea’s leading taxi-hailing app, has confidentially filed with the U.S. Securities and Exchange Commission (SEC) for a roughly $1 billion offering of American depositary receipts (ADRs), signaling a potential New York listing. The move is primarily seen as a strategic exit for TPG, the company’s second-largest shareholder, which holds a 29% stake and has sought to divest as its investment horizon nears maturity.

The filing, submitted in June, includes underwriting by Bank of America, Morgan Stanley, and UBS. A confidential SEC filing allows the company to receive initial regulatory feedback without public disclosure of key details such as pricing or structure. Kakao Mobility’s board approved the listing initiative earlier this year, including the formation of a shareholder value enhancement committee and restructuring plans.

The company previously attempted a domestic IPO in 2022 but delayed the effort amid regulatory and governance concerns. By pursuing an overseas listing, Kakao Mobility aims to navigate domestic scrutiny surrounding dual-listing practices while accessing broader international capital markets. However, regulatory authorities have indicated that shareholder protection standards apply to this overseas listing as they do for domestic ones.

The ADR offering is expected to facilitate TPG’s exit without diluting existing shareholder value, as no new shares will be issued. The process is now under formal regulatory review, with a potential listing as early as this year.