Viva Republica, the operator of financial technology app Toss, has kicked off procedures for an initial public offering, having selected lead underwriters. Securities firms estimate that the company's valuation could reach up to 20 trillion won ($15.1 billion).

Viva Republica selected crosstown rivals in the local IPO market -- Korea Investment & Securities and Mirae Asset Securities -- as the lead underwriters, according to industry sources Friday.

The securities firms have reportedly weighed the firm to be worth 15 trillion-20 trillion won. Given that IPO prices are set with a 20 to 30 percent discount on corporate value, the market cap for Toss is likely to range between 12 trillion and 16 trillion won.

The firm has not yet issued an official announcement regarding its plans for an IPO, but it will likely make a market debut next year.

Since being founded in 2013, Viva Republica has provided financial services through its app Toss. It operates internet-based lender Toss Bank, brokerage arm Toss Securities and insurer arbitrage Toss Insurance.

Yet profitability remains a concern.

Though the number of monthly active users of Toss has surpassed 10 million, the firm has been logging yearly deficits since its debut, seeing a 384 billion won loss in 2022.