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UPDATE 1-Kakao to hold shareholder vote on move to S.Korea's main stock board
May 2, 2017 / 9:07 AM / 5 months ago

UPDATE 1-Kakao to hold shareholder vote on move to S.Korea's main stock board

* Firm says shareholders requested move to Kospi

* Kakao second-largest on Kosdaq by market cap (Adds Kakao comments, context)

SEOUL, May 2 (Reuters) - South Korean messaging app operator Kakao Corp said on Tuesday it will hold an extraordinary shareholder meeting on June 14 to vote on moving its shares to the country’s main stock board.

A Kakao spokesman told Reuters the firm called for the vote to reflect requests from some shareholders about making the switch. The firm in April said it was considering such a move.

The company, which operates South Korea’s dominant messaging app KakaoTalk, is the second-most valuable firm listed on Kosdaq with a market capitalisation of 6.3 trillion won ($5.58 billion). Should it move to the main Kospi, it would be the 43rd most valuable there based on Tuesday’s closing price.

The Kakao spokesman declined to comment further on the rationale of the move but analysts said the firm could command a better valuation on the Kospi and attract more foreign and institutional investors.

“Kakao will likely be included in the Kospi 200 index once it migrates, so that will boost demand for the stock,” said Baro Investment analyst Lee Kyung-il.

$1 = 1,128.8500 won Reporting by Se Young Lee; Editing by Randy Fabi and Christopher Cushing

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