April 26, 2024
Finance
Mega IPOs may help vitalize lukewarm stock market
[THE INVESTOR] Samsung BioLogics and Doosan Bobcat are poised to make their market debuts in November, which some analysts say may help stock market recover from a recent market turmoil.
Last week, Samsung BioLogics, which makes copies of drugs, priced its initial public offering at the top end of its price band of 136,000 won, allowing it to raise up to 2.25 trillion won (US$1.97 billion) through the IPO slated for Nov. 10.
The IPO will mark the largest since Samsung Life Insurance’s 4.89 trillion won in 2010. Investors have shown keen interest in the biopharmaceutical unit of Samsung Group as the country’s leading conglomerate has been realigning its business portfolio to find new revenue sources.
According to Samsung BioLogics, demand from overseas and domestic institutional investors for the planned IPO were greater than expected. During book building sessions held last week, institutional investors made bids totaling 380 trillion won.
“If the market turns higher down the road and market uncertainties are reduced, newly listed stocks will draw attention from investors,” said Bae Sun-young, an analyst at Hyundai Securities.
The IPO by Doosan Bobcat, a unit of power and construction equipment conglomerate Doosan, is also one of this year’s big deals. The construction equipment maker’s market debut is slated on Nov. 18. Its size may be some 1 trillion won.
In the face of lukewarm market response, Doosan Bobcat lowered the price band to between 29,000 won and 33,000 won for the IPO last month, compared with the previously offered range of between 40,100 won and 50,000 won.
(theinvestor@heraldcorp.com)
Last week, Samsung BioLogics, which makes copies of drugs, priced its initial public offering at the top end of its price band of 136,000 won, allowing it to raise up to 2.25 trillion won (US$1.97 billion) through the IPO slated for Nov. 10.
The IPO will mark the largest since Samsung Life Insurance’s 4.89 trillion won in 2010. Investors have shown keen interest in the biopharmaceutical unit of Samsung Group as the country’s leading conglomerate has been realigning its business portfolio to find new revenue sources.
According to Samsung BioLogics, demand from overseas and domestic institutional investors for the planned IPO were greater than expected. During book building sessions held last week, institutional investors made bids totaling 380 trillion won.
“If the market turns higher down the road and market uncertainties are reduced, newly listed stocks will draw attention from investors,” said Bae Sun-young, an analyst at Hyundai Securities.
The IPO by Doosan Bobcat, a unit of power and construction equipment conglomerate Doosan, is also one of this year’s big deals. The construction equipment maker’s market debut is slated on Nov. 18. Its size may be some 1 trillion won.
In the face of lukewarm market response, Doosan Bobcat lowered the price band to between 29,000 won and 33,000 won for the IPO last month, compared with the previously offered range of between 40,100 won and 50,000 won.
(theinvestor@heraldcorp.com)
