Friday, May 9th, 2014
SEOUL, KOREA - As the news of Samsung SDS to make an IPO within the year, the prices of related stocks are on the rise. At 10:32 am on May 8, the shares of Samsung C&T were traded at 65,500 won, up 3.97 percent from the previous day's 63,000 won. The price of Samsung Electro-Mechanics also rose 3.05 percent. That of Credu shot up to the daily limit of 15 percent.
The rise of several Samsung shares is attributed to expectations on cash income on Samsung SDS shareholdings. On the same day Samsung SDS held a board of directors meeting and decided to take the company public within the year's end. This is a move for the company to leapfrog to the global market.
Samsung C&T owns a 17.1-percent stake (12,355,908 shares) in Samsung SDS. Given the over-the-counter market price of Samsung SDS share (face value of 500 won) as of May 7 was 149,500 won, the market value of Samsung C&T's shareholding is estimated at 2 trillion won. Samsung Electro-Mechanics is also holding a 7.9-percent stake (5,708,285 shares) in Samsung SDS, whose value is estimated at 850 billion won. Meanwhile, Samsung SDS holds a 47.2-percent stake in Credu, a Samsung Group company specializing in corporate training and education programs.