Seoul Guarantee Insurance eyes IPO in November

Seoul Guarantee Insurance headquarters in central Seoul [SGI]

Seoul Guarantee Insurance (SGI) will go public on Nov. 3 at an estimated share price of almost $40 apiece, according to the state-run company on Wednesday.

A total of 6,982,160 shares, or 10 percent of the company’s outstanding shares, will be up for listing in early November with an anticipated price ranging between 39,500 won ($30) and 51,800 won apiece, according to the company’s securities registration with the Financial Services Commission.

Based on the anticipated price, SGI’s market capitalization is expected to range between 2.76 trillion won and 3.62 trillion won.

The book building period will last from Oct. 13 to 19, which will be followed by the subscription date for two days starting on Oct. 25.

Mirae Asset Securities and Samsung Securities are the lead underwriters for the IPO (initial public offering).

SGI said its dividend payout ratio will be one of the most attractive factors for its investors.

“The merits as the dividend stock would be the biggest selling proposition for potential investors,” said SGI in a statement.

SGI had paid out dividends for 12 consecutive years as of the first half of 2023. Its dividend payout ratio as of last year was 50.2 percent, it said.

SGI will sell 10 percent of its outstanding shares that are owned by the Korea Deposit Insurance Corporation. The corporation currently holds 93.85 percent of SGI.

Founded in 1969, SGI is a comprehensive guarantee service provider. Its operating profit last year was 727.6 billion won.

BY JIN MIN-JI [jin.minji@joongang.co.kr]