20:1 Competition
Competition for Samsung SDS stocks before their public offering has reached as high as 20 to 1. The popularity is rather unprecedented in that such a subscription tends to be crowded on the final day. Under the circumstances, experts are paying much attention to whether or not the 19.8 trillion won (US$18.2 billion) subscription deposit record for the Samsung Life Insurance IPO will be broken at this time.
According to lead manager Korea Investment & Securities, investors submitted a total of 24,773,520 applications on the first day. The number of stocks for individual investors’ public subscriptions was 1,219,921, equivalent to 20 percent of the total. The competition rate was 20.31:1. It was 6.51:1 on the first day of the application for Samsung Life Insurance shares.
The offering price was fixed at 190,000 won (US$175) through the demand survey on institutional investors. The market capitalization of Samsung SDS calculated from it amounts to 14.7 trillion won (US$13.5 billion).
In the over-the-counter K-OTC market, Samsung SDS stocks have been traded at 340,000 to 370,000 won (US$312 to $339) per share in most cases. On Nov. 5, the price reached as high as 380,000 (US$350) during the trading session, and the closing price was 375,000 won (US$345), 22,000 won (US$20) up from the previous session.
The competition was 651.5 to 1 at the institutional investor demand survey carried out from Oct. 29 to 30. Industry insiders are predicting that the ongoing public offering will record a competition of at least 500 to 1. The application process continues until Nov. 6, and Samsung SDS is scheduled to be listed on Nov. 14.