Korean exchange Upbit's partner bank K Bank withdraws $700 million IPO

ChainCatcher news, according to Bloomberg, online lending institution K Bank has withdrawn its initial public offering (IPO) of over $700 million in Seoul. The company had originally planned to price the offering on Friday and was set to go public on October 30. A successful listing would have made it the largest IPO in South Korea in more than two and a half years, with a valuation of up to 50 trillion won ($3.6 billion) for the bank. The bank plans to resume its IPO early next year.

The withdrawal occurred amid concerns about its valuation and its reliance on deposits from cryptocurrency exchanges. K Bank rapidly expanded its customer base by partnering with Upbit, South Korea's largest cryptocurrency exchange, but the contract with the exchange is set to expire in October next year.

As of the end of June, deposits from Upbit accounted for 16.8% of K Bank's total deposits. K Bank stated in its IPO prospectus that failing to extend its partnership with key strategic partners could weaken the competitiveness of its platform.