(Yicai Global) Dec. 18 -- South Korean technology firm Kakao Corp. is seeking a Singapore listing to raise USD1 billion for overseas mergers and acquisitions. China's Tencent Holdings Ltd. [HK:0700] owns 13.54 percent of Kakao.

Kakao expects to issue global depositary receipts (GDRs) and list them on the Singapore Exchange in a secondary listing, it said in a regulatory filing on Dec. 15. Kakao Talk, the company's flagship mobile messaging app, has 43 million monthly active users, or 84 percent of South Korea's total population, Sina.com reported.

This type of secondary listing means the same types of stocks will trade in both places and can be transacted across markets via international custodian banks and stockbrokers, while GDRs are negotiable instruments depositary banks issue in international markets as evidence of ownership of shares in a non-US company.

Kakao expects to list its GDRs by early February. Goldman Sachs Group Inc. [NYSE:GS] and Citigroup Inc. [NYSE:C] will serve as advisers to the deal. Kakao will use the proceeds to acquire artificial intelligence firms and mobile content providers.

Kakao's fundraising comes just as the company posts strong earnings performance. Its operating and net profits increased 57 percent and 193 percent, respectively, from last year's third quarter, boosted by strong growth in content and advertising revenue.

Formed in 2004, Kakao provides ride-hailing and banking services in addition to its core messaging app services.