KDB Financial Group said it planned to float its shares in an initial public offering (IPO) next year on the domestic stock market as part of its ongoing privatization drive.
Chairman and Chief Executive Min Euoo-sung told a press briefing that the financial group that operates state-run Korea Development Bank and Daewoo Securities was aiming for both a domestic and international IPO.
The IPO plan in the local bourse, which still needs to be cleared by the government, will target not only local portfolio investors but foreign players.
“I think, considering other IPO cases, 10 to 15 percent size is more realistic and ideal,” said Kim Jin-ho, KDB’s chief financial officer.
KDB, with a total equity of 16 trillion won ($14.16 billion), is considering listing shares in the New York and Hong Kong bourse.
In a bid to energize its privatization process, Chairman Min who headed Lehman Brothers’ Korean operations between 2005 and early 2008, said he would continue outbound M&A activities, especially in Asia. He did not specify any bid targets.
“The Korean market is a saturated market ... We are more focused on the international market for our M&A strategy.”
KDB participated in the sale of Thailand’s Siam City Bank but pulled out citing regulatory uncertainties in the global banking industry.
Min also said KDB was ready to restart the stalled sale of Daewoo Shipbuilding & Marine Engineering but was waiting for two big deals in the pipeline Woori Finance Holdings and Hyundai Engineering & Construction to be cleared.
KDB has picked Citigroup to advise on the sale, jointly with Korea Development Bank and Daewoo Securities.
The Korean government will start the sale this week of its 57 percent stake, worth around $6 billion, in Woori, the country’s No. 3 financial services group, which would be the biggest takeover deal this year.
Also, shareholders of Hyundai E&C are expected to pick a preferred bidder before the end of this year for their stake worth $2.5 billion.