IPO for Cheil Industries is pinned at $1.4 billion

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IPO for Cheil Industries is pinned at $1.4 billion

Cheil Industries, the de facto holding company for Samsung Group’s Lee Kun-hee family, set the price for its 1.52 trillion won ($1.4 billion) initial public offering at the top of the marketed range.

Stock will be sold at 53,000 won apiece in the IPO, according to a regulatory filing Friday. The company will sell 10 million new shares in the offer, while three shareholders will sell 18.75 million shares of existing stock. Cheil had marketed the shares at 45,000 won to 53,000 won.

The IPO is the second from the Lee family in as many months after the sale of Samsung SDS, a technology-services company.

Political pressure is mounting on Samsung to unwind a web of cross-shareholdings that allows the Lee family to maintain control of about 70 companies with less than a 2 percent total stake.

President Park Geun-hye’s government banned the creation of new cross-shareholdings and offered tax breaks for restructuring as part of measures to improve corporate governance and make the family-run chaebol business groups more transparent.

In order to take control of Samsung Group, Lee’s three heirs face inheritance taxes that could exceed $5 billion for their father’s $12.8 billion fortune.

Cheil, formerly known as Samsung Everland, said in June it was seeking to go public to help overseas expansion and improve management transparency.

The company sits atop the group via direct and indirect stakes in affiliates including Samsung Electronics and Samsung Life Insurance.

Bloomberg


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