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New Samsung C&T Makes Good Start after Re-listing
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New Samsung C&T Makes Good Start after Re-listing
  • By Jung Suk-yee
  • September 16, 2015, 05:30
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The Seoul High Court ruled on May 31 that the stock price of Samsung C&T had failed to reflect the value of the corporation in an objective way.
The Seoul High Court ruled on May 31 that the stock price of Samsung C&T had failed to reflect the value of the corporation in an objective way.

 

Samsung C&T was listed on the Korean stock exchange again on Sept. 15 after its merger with Cheil Industries. That day, it became a company with the fourth-largest market capitalization in KOSPI with its stock price, trading volume, and trading amount rising at the same time.

[[{"fid":"12792","view_mode":"body_image_right","fields":{"format":"body_image_right","field_file_image_alt_text[und][0][value]":"Samsung C&T stocks were highest in June this year, dropping down for Aug. and then coming back up in Sept.","field_file_image_title_text[und][0][value]":""},"type":"media","attributes":{"alt":"Samsung C&T stocks were highest in June this year, dropping down for Aug. and then coming back up in Sept.","height":450,"width":450,"class":"media-element file-body-image-right"},"link_text":null}]]The stock price gained 2.84 percent from the previous session to 163,000 won (US$138.72) per share, and the market cap totaled 30.9195 trillion won (US$26.3147 billion), about 300 billion won (US$255 million) less than that of the third-ranking Korea Electric Power Corporation (KEPCO). Foreign and institutional investors bought Samsung C&T shares worth 18 billion won (US$15.3 million) and 2.7 billion won (US$2.3 million), respectively.

The trading volume amounted to 1.56 million shares, more than triple the previous session’s. The trading amount more than tripled as well, to 250.7 billion won (US$213.4 million), second only to that of Samsung Electronics at 258.3 billion won (US$219.8 million).

Securities analysts are predicting that Samsung C&T will be able to continue to gain for the time being by taking the re-listing opportunity. “The key business of the new company, including biotech and real estate development, is likely to continue to grow, in that these are enjoying a substantial competitive edge in Korea,” said BNK Securities, adding, “In addition, the Samsung Group as a whole is expected to keep enhancing the corporate value of Samsung C&T, because it is at the center of the corporate governance structure of the entire group.” At present, securities firms’ target price for Samsung C&T is between 240,000 and 300,000 won (US$204 to $255) per share.

Foreign investors’ stock holding in the company is forecast to rise, too. “Distributable Samsung C&T shares are about 30 percent of the total, excluding those of the largest shareholders, and KCC and the treasury stocks,” Hyundai Research Institute explained, continuing, “Foreign shareholding in Samsung C&T is predicted to go up by at least 15 percent, given that the ratio is currently over 50 percent in the five companies with the largest aggregate market values.” The ratio of Samsung C&T shares owned by foreigners is 10.45 percent now.