Daum Kakao Dominates KOSDAQ Trading on Opening Day
kpopluv, Oct. 15, 2014, 6:45 a.m.
The newly merged company Daum Kakao, which operates mobile messaging app Kakao Talk, quickly rose to the top spot when it started trading on the junior Kosdaq exchange. The company was officially listed after issuing 43 million new shares in addition to existing Daum stocks.
Daum Kakao shares surged shortly after trading began. Daum's share price ended at W128,400 (US$1=W1,065) on Monday, but Daum Kakao closed up 8.33 percent at W139,100 on the first day. Market cap totaled W7.87 trillion, surpassing bio-pharmaceutical company Celltrion's market cap of W4.45 trillion.
The new company was projected to have a total market cap of more than W10 trillion but fell below expectations as the shares tumbled 23 percent over the last two weeks following controversy over KakaoTalk message logs being monitored by law enforcement here.
Kakao CEO Lee Sir-goo held an emergency press conference a day before the listing to apologize and lay out measures to bolster security. Lee Sung-bin at IBK Securities said, "This is believed to have been an effective response at the early stage of the scandal when many users began to leave."