Another Hit
Stock market investors are paying keen attention to the initial stock price of Cheil Industries, with its listing around the corner. The public offering starts on Dec. 10, eight days ahead of the listing, and securities companies are presenting their target prices.
KTB Investment & Securities’ target price is 70,000 won (US$63) and Kiwoom Securities had suggested 91,000 won (US$82) earlier. These are close to double the IPO price estimate at 45,000 to 53,000 won (US$40 to $47).
Cheil Industries is one of the two most anticipated IPO cases this year, along with Samsung SDS. Samsung SDS shares started from 380,000 won (US$340), double the public offering price.
Cheil Industries can have a bigger impact on the stock market because it is expected to act as the de facto holding company of the Samsung Group in the future. “Cheil is particularly attractive since the second-generation owners of Samsung own as much as 40 percent or so of Cheil, and the group is currently striving for smooth business succession,” KTB Investment & Securities research analyst Oh Jin-won explained, adding, “Its role as the de facto holding company to control the group in the transition period is adding to the appeal.”
In the meantime, Samsung SDS recorded a competition rate of 134 to 1 earlier during its public offering for institutional and individual investors. The subscription deposit totaled 15.6 trillion won (US$14.0 billion).