SEOUL, Aug. 27 (Korea Bizwire) – Samsung SDS, the IT services affiliate of the leading conglomerate Samsung Group, reportedly applied for preliminary listing approval on the South Korean stock exchange. The company is now considered as a big shot in the initial public offering market this year.
The IT company is planned to obtain fast-track designation, which shortens the waiting period from 45 days in general to 20 days, which is reserved only for qualified companies. If it is granted, the company will make a stock market debut at the beginning of November.
Samsung SDS was established in 1985, whose sales reached 4.6 trillion won, equivalent to US$4.56 billion, in 2013 with its net profit of 242.9 billion won.
Samsung Electronics, another affiliate of Samsung Group, holds a 22.58 percent stake, and Samsung C&T and Samsung Electro-Mechanics holds 17.08 percent and 7.88 percent respectively. In addition, Lee Jae-yong, vice chairman of Samsung Electronics and son of chairman Lee Kun-hee, holds an 11.25 percent stake. Lee Kun-hee’s two daughters also hold 3.9 percent each. Industry watchers assume that the cash generated by the IPO could be used to solidify Jae-yong’s place in the course of succession.
Goldman Sachs Korea and Korea Investment & Securities are advising on the listing. In the over-the-counter market on the 25th, the IT affiliate’s stock price rose to 238,000 won, or about US$234, up 400.53 percent from the net asset value.
By Veronica Huh (email@example.com)