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The Korea Herald
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THE INVESTOR
March 29, 2024

Bio

Samsung BioLogics IPO fails to attract retail investors

  • PUBLISHED :November 03, 2016 - 11:55
  • UPDATED :November 03, 2016 - 13:28
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[THE INVESTOR] The initial public offering of Samsung BioLogics generated relatively low retail investors’ interest on the first day of the issue on Nov. 1, according to Korea Investment & Securities, which handles the deal.

The IPO of Samsung Group’s contract drug-manufacturing arm received bids for 13,579,190 shares, which were 4.1 times the total issue size of 3,308,261 shares in which quota is reserved for retail individual investors, the brokerage said.

 

Samsung BioLogics headquarters in Songdo, Incheon. Samsung BioLogics



It was received lukewarm investor interest than expected for what is still set to be the largest IPO in the country this year, comparing to the largest share sales such as Cheil Industries which was subscribed 38.8 times in 2014.

Low investor demand stemmed from the IPO price that the firm set at the top end of the marketed range of 113,000 won (US$99.13) to 136,000 won, valuing the company at 9 trillion won.

“Amid weak investor sentiment in the IPO market, the price may discourage buyers,” an official at a brokerage said.

Meanwhile, the quota set aside for institutional buyers was oversubscribed 281 times on Oct. 27 when the firm finished taking orders from them.

The public offering of 25 percent shares of the company is expected to consist of a new share issue of 11 million and the sale of 5.5 million existing shares by Samsung Electronics.

Shares of Samsung BioLogics are scheduled to be listed on Nov. 10.

By Park Han-na (hnpark@heraldcorp.com)

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