Samsung Engineering Attracts 2 Trillion Won for 0.1% of Forfeited Shares

Nearly 2 trillion won (US$1.65 billion) of money have flooded into 0.1 percent of the forfeited shares of the paid-in capital increase from Samsung Engineering. Competition for the stocks in the company's public offering was 2,543 to 1.

According to Samsung Engineering’s paid-in capital increase coordinators, NH Investment & Securities and Korea Investment & Securities, on Feb. 16, the public offering of forfeited stocks closed at 4 pm on the day and its acceptance rate reached 2,543 to 1. The subscription deposits amounted to 1.91 trillion won (US$1.57 billion). Competition for the high yield in the company's public offering was 201.5 to 1 and its subscription deposits stood at 16.8 billion won (US$13.83 million).

Samsung Engineering carried out the public offering for 102,972 shares for two days from Feb. 15.

Of the total 156 million new shares offering during Feb. 11 to 12, 155.89 million shares, or 99.9 percent, worth 1.27 trillion won (US$1.04 billion) it offered to its employee stock ownership association and the existing shareholders were sold. Therefore, only 102,972 shares or 0.1 percent, remained unsold.

As Samsung Group announced earlier, Samsung Electronics vice chairman Lee Jae-yong did not participate in the offering. In Dec. last year, Lee intended to buy up to 300 billion won (US$246.91 million) worth of Samsung Engineering’s new shares that are unsold in the rights offering for the success of Samsung Engineering’s capital increase. However, he said he would not take part in the offering as the company successfully increased capital. 

With Samsung Engineering selling 100 percent of the new shares it issued in the rights offering with high competition rates, all eyes are whether the company can completely get out of the state of capital impairment.