SEOUL/HONG KONG (Reuters) - Korea Life Insurance"s IPO was oversubscribed but pricing is likely to come in around the bottom of the reference range, with investors reluctant to overpay ahead of a bigger offering by Samsung Life, sources said.
Korea Life, South Korea"s No. 2 life insurer, is selling 210 million shares at a reference price range of 9,000 won-11,000 won each. At the bottom of the reference range, the IPO would be worth 1.89 trillion won ($1.66 billion).
"It appears to be more oversubscribed than expected, but the price will be around 9,000 won at best," said a senior official at a local asset management house, who declined to be named.
"If the final pricing comes above 9,000 won, we would rather buy Samsung Life (IPO) shares," said another senior fund manager.
Another source close to the deal also told Reuters the pricing was likely to come in within the range despite oversubscription.
South Korea"s top life insurer Samsung Life is planning its own IPO in May or June, estimated to be at least $4 billion and likely the biggest ever in South Korea.
Overseas, Japan"s second-biggest life insurer Dai-ichi Mutual Life Insurance plans to sell nearly $12 billion worth of shares in the country"s biggest IPO in more than a decade.
Credit Suisse (CSGN.VX), JPMorgan (JPM.N), Deutsche Bank (DBKGn.DE) are joint international bookrunners for Korea Life"s IPO. Among local brokerages Daewoo Securities (006800.KS), Woori Investment Securities (005940.KS) and Tong Yang Securities (003470.KS) were granted mandates.
($1=1141.2 Won)
(Reporting by Jungyoun Park and Rhee So-eui in SEOUL, Kennix Chim in HONG KONG; Additional reporting by Miyoung Kim and Lee Chang-ho)
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