Thursday, June 12th, 2014
The KOSPI market awaits a series of large-scale initial public offerings. Following the IPO announcement of Samsung SDS and Samsung Everland, Daeryun E&S, Kyobo Life, and Air Busan are moving to take their shares public.
According to investment banking sources on June 11, Daeryun E&S has recently signed a contract with Woori Investment & Securities for underwriting deals. The company, a Hanjin Heavy Industries Group company, is currently supplying gas to 830,000 families in northern Seoul and surrounding suburban towns. It posted sales revenue of 895.1 billion won, operating profit of 15.8 billion won, and net profit of 15.5 billion won last year. Analysts estimated Daeryun's market value upon IPO would be more than 300 billion won.
Kyobo Life is also in talks with major securities firms for possible IPO plans. The life insurer's IPO plan is closely linked to its bid to acquire Woori Bank. In order to finance the money to purchase the asset which is expected to be upward of 3 trillion won, there is no way for Kyobo Life to do so except going public. Analysts expected the value of Kyobo Life would range between 5-8 trillion won, given the value of similar companies like Samsung Life and Hanwha Life.
Air Busan, a low-cost carrier under the umbrella of Kumho-Asiana Group, held an extraordinary shareholders meeting on May 30 and approved a proposal to take the company public. The budget airliner plans to do so before the end of 2015.