According to the Korea Exchange (KRX) and investment bank industry sources on Jan. 11, Samsung BioLogics has made the final decision to go public on the domestic stock market by the end of this year. A senior official from the KRX said, “After weighing advantages and disadvantages for a long time, Samsung BioLogics has recently opted for the domestic stock market over the NASDAQ.”
Last year, the company seemed to be seeking a listing on the NASDAQ in the U.S. However, the company has decided to make an IPO in the domestic stock market. This is because the listing of Samsung BioLogics, a next-generation major company of Samsung Group, in the U.S. market can have adverse effects in the domestic market and create criticism, though its corporate value can be increased. In particular, it was difficult for the company to make a decision to go public in the U.S. market as Samsung Bioepis, a subsidiary of Samsung BioLogics, is planning to list the company in the NASDAQ in the first half of this year. Moreover, the company considered the fact that domestic shareholders, who had the casting vote including the National Pension Service, voted in favor of the merger of Samsung C&T and Cheil Industries last year when the foreign hedge fund firm tried to seek the merger.
Samsung BioLogics will go public in the domestic stock market in the second half of the year after Samsung BioLogics completes the IPO in the NASDAQ in the first half of the year. Currently, the company is considering whether to seek the listing in the KOSPI or the KOSDAQ.
Financial investment industry watchers believe that the minimum market capitalization of Samsung BioLogics will amount to over 10 trillion won (US$8.29 billion) after the listing. The figure is about the size of the 23rd market capitalization in the KOSPI and the number one market capitalization in the KOSDAQ as of the day.
When Samsung BioLogics go public on the domestic stock market, the company will become the biggest shot in IPO this year, along with Lotte Hotel.