Kakao Bank becomes S. Korea's most valuable financial firm with 33.2 trillion won cap after stock market debut

Internet-only bank Kakao Bank Corp. capped its stock market debut at 69,800 won to emerge as South Korea's most valuable financial firm with a market capitalization of 33.2 trillion won.

After opening at 53,700 won, shares of Kakao Bank soared to a daily allowable limit of 29.98 percent.

The market capitalization of former number one KB Financial Group stood at 21.7 trillion won, trailed by Shinhan Financial Group at 20 trillion won and Hana Financial Group at 13 trillion won.

During its subscription period on July 26 to 27, deposits for Kakao Bank's stock offering were unexpectedly smaller at 58.3 trillion won, with an average subscription rate of 182.7:1.

The lower-than-estimated deposit was due to the ban on subscriptions to multiple brokerage houses.

The controversy surrounding the IPO price overvaluation also made investors hesitant on Kakao Bank's first trading day.

Last year, Kakao Bank posted an operating income of 804.2 billion won and a net profit of 113.6 billion won.

Kakao Bank is popular among mobile-savvy customers due to its around-the-clock service and convenience.