SEOUL, Sep. 26 (Korea Bizwire) — As Samsung SDS passed the preliminary review for the initial public offering on September 25, it expects to list its shares by November this year.
The Samsung Group company plans to hold a public subscription by next month, with shares held by the group affiliates to be sold to third-party buyers instead of issuing new shares. Once the plan is implemented as scheduled, there won’t be any change in the 20 percent or so shareholdings of the group family members including Lee Jae-yong, Lee Boo-jin, and Lee Seo-hyun.
The Korea Exchange held an IPO deliberation committee meeting on the 25th and approved an application by Samsung SDS submitted late last month. As Samsung’s IT service unit requested for fast-track screening for corporate continuity, management transparency, and business stability, the deliberation process that would usually take two months has been shortened to a month.
Samsung SDS, jointly with the underwriter Korea Investment & Securities, will submit an application with the Financial Supervisory Service within next week. The financial regulator will review the application within 15 business days and decide whether to approve it. After this, Samsung SDS will hold an investor relations session and determine the final public subscription price depending on the results of demand forecast. Considering all these, the IPO time is estimated in early November.
According to investment bankers, the company will likely sell 5.4 million shares (or 7.88% of all its outstanding shares) to the public, with no plan for new share issuing in the near future. Currently the shares of Samsung SDS are owned by Samsung Electronics (22.58%) and Samsung C&T (17.08%), as well as Samsung Electro-Mechanics. Lee Jae-yong, Samsung Electronics vice president, owns an 11.25-percent stake in the company while his two sisters, Boo-jin and Seo-hyun, presidents of Hotel Shilla and Cheil Industries respectively, owning a 3.9-percent stake each.
By Sean Chung (firstname.lastname@example.org)