South Korea’s biggest life insurer has applied to launch what would likely be the country’s largest ever initial public offering, the stock exchange said Thursday.
Samsung Life Insurance will begin listing procedures once it gets approval from the Korea Exchange, which could take up to two months, a spokesman at the bourse told AFP.
The share sale is expected to be worth between four and five trillion won (3.5-4.4 billion dollars), according to news reports.
A day earlier, shareholders approved a 10 to one share-split plan to pave the way for the listing. The decision will reduce the face value of Samsung Life shares to 500 won from 5,000 won.
The stock split is aimed at preventing “downward pressure” on stock prices stemming from a shortage of trading shares, the life insurer said earlier.
Goldman Sachs, Morgan Stanley, Bank of America-Merrill Lynch, Korea Investment and Securities and Shinhan Investment Corp. are managing the offering.
Samsung Life is a key subsidiary of South Korea’s largest conglomerate, Samsung Group.
The stock exchange said Samsung Life posted 113 billion won in net profit and 25.3 trillion won in operating profit for fiscal 2008.
A flurry of life insurers plan to become publicly traded companies this year. Third-largest player Korea Life Insurance will become the first to go public on the bourse.
