Superbank, an Indonesian digital bank backed by Kakao Bank, made a strong stock market debut Wednesday, underscoring the Korean internet-only lender’s global expansion strategy.
The shares of Superbank jumped to the daily upper limit, rising about 25 percent from the initial public offering price of 635 rupiahs ($0.038) on its first day of trading on the Indonesia Stock Exchange. The IPO drew more than one million subscription applications, representing a competition rate of 318 to 1, according to local financial sources.
Based on the debut price, Superbank’s market capitalization is estimated at around 2.4 trillion won ($1.6 billion). That marks a sharp increase from the roughly 900-billion-won valuation at the time Kakao Bank made its first investment in the Indonesian lender in 2023.
Superbank is Kakao Bank’s first overseas investment and part of a broader Southeast Asia strategy built around a partnership with Singapore-based ride-hailing and food delivery platform Grab, signed in October 2023.
Kakao Bank invested a total of 114 billion won in Superbank across two rounds in 2023 and 2024. Following the listing, the value of Kakao Bank’s stake is estimated at about 204.4 billion won.
Kakao Bank said the investment reflects a shift away from traditional expansion via high-cost mergers and acquisitions, toward a technology-driven approach. Instead of acquiring small local banks, the company said it chose to transfer its core mobile banking technology and operational know-how.
Since Superbank’s launch, Kakao Bank has worked closely with the Indonesian lender on product and service development, as well as mobile app design, user interface and user experience. Beyond its equity stake, Kakao Bank has also provided advisory support to help Superbank introduce technology-based financial services tailored to the Indonesian market.
Superbank turned profitable in the first quarter, less than a year after its official launch. Its customer base has grown to more than 5 million users.
“By pursuing a global expansion strategy optimized for Kakao Bank and delivering tangible results, we have demonstrated the competitiveness of mobile-based financial technology in overseas markets,” Kakao Bank CEO Yun Ho-young said.
Kakao Bank plans to use the Superbank partnership as a platform to broaden its regional footprint, extending its role from investment and consulting to leading the development of mobile financial systems.
The lender said it intends to take charge of product, service and app development for a Thai virtual bank that received regulatory approval in June and is preparing to launch. Discussions with Grab on wider Southeast Asian cooperation are also ongoing.
“As Kakao Bank gains recognition as a viable model for future banking globally, we will continue building a digital banking network to secure mid- to long-term growth,” Yun said.
andreahaneu@heraldcorp.com
