Kakao issue GDRs up to $1 billion for global M&A

Kakao Corp. issue global depositary receipts (GDRs) of up to US$1 billion to international investors for mergers and acquisitions. South Korea-based KakaoTalk messaging application service provider said on Friday it aims to raise overseas funding for use in global expansion.

Kakao, established by Kim Beom-Soo in 2010, said in an official statement that it expects to issue GDR to foreign investors and register it on the Singapore Exchange in February. The company opens opportunities for mergers and acquisitions of global content platform providers and other technology areas.

Kakao has expanded its business beyond KakaoTalk's dominant South Korean messaging app. The company collaborated with other companies such as Hyundai Motor to develop artificial intelligence technology.

Kim Beom-soo as founder is the largest shareholder and K Cube Holdings is the second largest shareholder, each having 18.46 percent and 14.65 percent. Kakao is the first Korean company in three years to issue GDRs that shares in overseas markets.