Is Toss Bank ready for an IPO?

Viva Republica’s Toss Bank has been visibly contemplating an initial public offering (IPO) since earlier this year. It is aiming to achieve a valuation of 15 to 20 trillion won (US$11 billion-US$15 billion). Toss is feeling increasingly good about going public because of what it sees as strong fundamentals. It has amassed more than 19.1 million monthly active users, while its loan brokerage, payments, advertising and tax services are performing well, as is its subsidiary Toss Securities.

Toss Bank has developed some innovative products that are proving popular with South Korean retail customers. For instance, in 2023, Toss launched a joint deposit account product called the “gathering passbook,” through which a group of people can jointly manage a shared account. The product allows every registered member of a joint account the same access and rights to a deposit account ― including cash withdrawals, deposits and payment settlement. Every member can also get their own debit card for the shared account.

Toss Bank has also cultivated a strong market niche among customers with medium and low credit, which account for about 40% of its loan customers. Despite focusing on this somewhat risky demographic, Toss’s overall credit loan delinquency rate is only about 1.35%.

At the same time, Toss’s financial performance is steadily improving. Toss Bank reported a record half-year net profit of 24.5 billion won, while Toss Securities became the first Toss subsidiary to report an annual profit in 2023.

The Toss IPO is expected to happen in early 2025. According to Korean media, Viva Republica said that it has not set a specific timeline for its market listing and is awaiting optimal conditions.

“We are evaluating various factors, including our investor relationships and market conditions. The focus is not just on the timing of the debut but also on achieving the best valuation. We are assessing the situation to determine the right moment for our listing,” a company official told The Korea Herald.