Tuesday, September 25, 2018
Multiple Major IPOs around the Corner in Seoul Bourse
A Series of Big IPOs Scheduled
Multiple Major IPOs around the Corner in Seoul Bourse
  • By Jung Suk-yee
  • July 5, 2018, 11:58
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Major IPOs in the second half of this year are likely to exceed 3.1 trillion won (US$2.8 billion).
Major IPOs in the second half of this year are likely to exceed 3.1 trillion won (US$2.8 billion).

A series of big initial public offerings (IPOs) are scheduled in the Seoul bourse in the second half of this year.

According to industry sources, Hyundai Oilbank is planning to go public on the KOSPI in October and is currently working with NH Investment & Securities and Hana Financial Investment to that end. The size of the IPO is estimated at two trillion won (US$1.8 billion) and the company’s enterprise value is estimated at eight trillion won (US$7.2 billion).


In the KOSDAQ, Kakao Games already obtained an approval from the Korea Exchange last month with Korea Investment & Securities as its lead manager. The company is scheduled to be listed next month with an estimated IPO value of 124.0 billion won (US$111 million) to 192.8 billion won (US$173 million).


Low-cost carrier (LCC) T’way Air goes public on the KOSPI early next month. Its lead managers are Shinhan Investment Corporation and Daishin Securities and the estimated size of the IPO is 233.6 billion won (US$210 million) to 267.2 billion won (US$240 million). Demand forecasting for institutional investors is scheduled for July 17 and 18 and general investor subscription is scheduled for July 23 and 24.
 

Lotte Data Communication Company, which is a fully-owned subsidiary of Lotte Holdings, initiated its IPO preparation process last month by submitting its report to the Financial Services Commission. Its lead manager is Mirae Asset Daewoo and the size is estimated at 121.3 billion won (US$109 million) to 144.9 billion won (US$130 million). Demand forecasting for offering price determination, subscription, and listing are scheduled for July 11 and 12, July 17 and 18, and late this month, respectively.
 

CJ CGV Vietnam Holdings applied for a listing examination last month and is expected to enter the KOSPI in October this year. The lead managers are Shinhan Investment Corporation and Hanwha Investment & Securities. The fully-owned subsidiary of CJ CGV posted a share of 45.3% in the Vietnamese film market as of the end of March this year.

Bodyfriend is preparing to follow suit with Mirae Asset Daewoo and Morgan Stanley as its lead managers. The massage chair manufacturer’s enterprise value is estimated at up to three trillion won (US$2.7 billion).
 

“The major IPOs in the second half of this year are likely to lead to a total offering value exceeding that of the second half of 2017, 3.1 trillion won (US$2.8 billion),” said SK Securities, adding, “The recent relaxation of KOSDAQ listing requirements is expected to facilitate the offerings as well.”