×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

Samsung Life’s IPO draws huge response from investors

Samsung Life’s IPO draws huge response from investors
AFP
Comment E-mail Print Share
First Published: Tue, May 04 2010. 02 32 PM IST
Updated: Tue, May 04 2010. 02 32 PM IST
Seoul: South Korea’s biggest initial public offering has drawn a huge response from investors, with shares in top insurer Samsung Life more than 30 times oversubscribed, a brokerage said on Tuesday.
Samsung Life Insurance is offering 44.44 million shares at 110,000 won ($99) with 20% for small domestic retail investors, 40% for foreigners and 20% each for local institutional investors and employees.
As of 3 pm (0600 GMT), six securities firms offering the shares had accepted a subscription of 33 times the allotted amount for retail investors, said main underwriter Korea Investment and Securities.
“Institutional investors think very highly of Samsung Life shares with the stock being traded at 130,000 won on the over-the-counter market,” Lim Seung-Ju of Kyobo Securities told Yonhap news agency.
Samsung Life’s status as the country’s leading life insurer gives its shares premium value, he said.
With annual revenue of around $22 billion, the company controls a 27.9% share of the life insurance market.
The prospect of solid institutional purchases also helped fuel the appetite of retail investors.
In terms of the IPO price, Samsung Life Insurance will become the sixth largest firm on the main bourse by market capitalisation, with 22 trillion won when it makes its market debut next week.
Samsung Life has long been regarded as the virtual holding company of the Samsung group, which has 64 units including Samsung Electronics, the world’s largest computer memory chip maker.
Comment E-mail Print Share
First Published: Tue, May 04 2010. 02 32 PM IST
More Topics: South Korea | Insurance | Samsung | IPO | Shares |