Preparations for a Naver IPO are underway following an agreement between Naver Financial and cryptocurrency exchange operator Dunamu to merge through a comprehensive share swap, according to The Korea Herald.

The companies plan to form a joint committee within a year of completing the exchange to prepare for a public market debut.

The listing is targeted to take place within five years, though this timeline could extend by an additional two years. Market expectations suggest the Naver IPO could involve an overseas listing, potentially on the US Nasdaq.

“The listing plan, including timing and structure, has not been finalised,”

a Naver spokesperson said.

“We will make a decision after taking market conditions and regulatory developments into account.”

The merger agreement, first announced in November, will see Naver Financial take a 100% stake in Dunamu.

However, the timeline for the deal has slipped by roughly three months due to a prolonged review by South Korea’s Fair Trade Commission.

The shareholder meeting to approve the share swap has been rescheduled from May 22 to August 18. The expected completion date for the merger is now September 30, pushed back from the original June 30 target.

Regulatory hurdles for the Naver IPO

The proposed Digital Asset Basic Act in South Korea is creating additional uncertainty for the merger. The legislation includes provisions that could limit the ownership stakes held by major shareholders in cryptocurrency exchanges.

“Depending on how the legislation is finalised, the deal structure and timeline could be affected,”

a Naver Financial official said.

While the merger is rooted in South Korea, a successful Nasdaq listing for a major Asian cryptocurrency player could set a precedent for digital asset firms across the region, including those operating in Hong Kong.

A regulatory filing confirmed that Naver will retain control over Naver Financial.

The parent company will secure voting rights through agreements with investors, ensuring Naver Financial remains a consolidated subsidiary.

Following the share swap, both Naver Financial and Dunamu will continue operating their existing businesses while increasing operational cooperation.

Specific decisions regarding further restructuring and the Naver IPO timetable will require board approval.

Featured image credit: Edited by Fintech News Hong Kong, based on image by muhagraph via Freepik