Overseas GDR Issuance
Kolao Holdings, a notable Korean firm operating overseas, recently succeeded in issuing US$50 million (around 160 billion won) worth of global depository receipts (GDRs), which were listed on Singapore’s stock market, said Kolao Holdings and investment banks on November 25.
In the process of the deal, its second largest shareholder Morgan Stanley injected another US$38 million (around 43 billion won) in Kolao.
Sung Sang-yong, vice president and CFO of Kolao Holdings, said, “Morgan Stanley’s investment decision seems to have come from its confidence on our business expansion into Myanmar and Cambodia with our truck sales business being successful.”
Morgan Stanley’s participation in the GDR issuance this time will raise the US-based investment bank’s stake in Kolao by 2 percentage points to 12.7 percent from the current 10.7 percent.
Morgan Stanley continuously increased its stakes of Kolao by purchasing a 9.38 percent stake or 3.6 million shares (about 29 billion won) in February in 2012 and a 1.36 percent stake or 523,770 shares in August 2012.
The return on Morgan Stanley’s first investment in Kolao exceeds 260 percent, and the one on its second investment reaches almost 100 percent based on Kolao’s closing price of 29,450 won per share on November 25.