Kakao Bank may suffer from overhang issues Posted : 2021-02-10 15:39 By Anna J. Park As Kakao Bank prepares for its initial public offering (IPO) to take place sometime this year, market watchers are eyeing whether the company's large shareholders would sell their stakes in the internet bank before the IPO, causing a stock overhang. A stock overhang happens when a massive amount of shares are offloaded by shareholders who hold a large stake, depressing the share price as the amount dilutes the stock's value. Concerns about overhanging stocks are being voiced because market insiders suspect that internet-based bookstore YES24 ― one of the large shareholders of the mobile bank ― might further sell its shares to venture capital companies.