Korean insurer announces investor roadshows in Singapore and HK ahead of IPO

Korean insurer announces investor roadshows in Singapore and HK ahead of IPO | Insurance Business Asia

Insurance News

Korean insurer announces investor roadshows in Singapore and HK ahead of IPO

It stands as the only guarantee insurance firm in the country

Insurance News

By
Kenneth Araullo

Seoul Guarantee Insurance (SGI) has organised a series of deal roadshows in Hong Kong and Singapore aimed at both Korean and foreign investors, commencing on September 19. The move comes after the recent submission of its prospectus for an impending IPO.

As per the company’s announcement, the roadshow is slated to engage foreign investors in Hong Kong and Singapore, in addition to local investors, spanning mid-October. It will feature group meetings involving chief investment officers (CIOs) from major global institutional investors and foreign analysts, providing insights into the company’s public offering plan.

The Korea Deposit Insurance Corporation (KDIC), the majority shareholder holding a 93.85% stake in SGI, is set to take part in the roadshow to engage with international investors. Mirae Asset Securities and Samsung Securities, lead underwriters for the IPO, will also actively participate in this investor relations event.

“SGI aims to convey key investment highlights of the firm to overseas investors, including its solid earnings, financial soundness and a high dividend payout ratio during the deal roadshow,” an SGI official revealed to The Korea Times. “The company strives to achieve a successful public offering by continuously enhancing corporate value.”

SGI, Korea’s sole guarantee insurance company, intends to divest approximately 10%, translating to about 6.9 million outstanding shares currently held by the KDIC during the IPO. With the successful IPO, KDIC’s stake in SGI will decrease to 83.9% from the current percentage, and the state-run institution plans to further divest stakes following a six-month lock-up period.

The estimated offering price per share is anticipated to fall within the range of 39,500 to 51,800 won ($29.7-$38.9), placing SGI’s corporate valuation at approximately KRW2.7 trillion to KRW3.6 trillion.

The company is set to initiate a book building process both domestically and internationally from October 13 to 19, with a subscription period for retail investors slated for October 25 and 26. Given this timeline, SGI is expected to debut on the KOSPI, the primary benchmark of the Korean stock market, in November.

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