Samsung Life plans to raise 5.1 trl won in May IPO

Samsung Life Insurance Co., South Korea's top life insurer, released Wednesday a target price range for its May initial public offering (IPO), which could fetch up to 5.1 trillion won (US$4.5 billion).

Samsung Life said in a regulatory filing it set a target price band of 90,000-115,000 won ($79.6-101.7) each for its IPO of 44.4 million existing shares.

Samsung Life, whose biggest shareholder is Samsung Group Chairman Lee Kun-hee with 34.1 percent, will not issue new shares for the IPO, the life insurer said.

If Samsung Life successfully sells its shares at the high end when it goes public, the life insurer, affiliated with the nation's largest industrial conglomerate, Samsung Group, could raise 5.1 trillion won.

Even at the lower end, Samsung Life's IPO may mark the biggest public stock offering on the Korea Exchange in its 55-year history.

Shinsegae Co., the country's second-largest retailer, and CJ Cheiljedang Corp., South Korea's biggest food company, will together sell a combined 10 million shares of Samsung Life, the life insurer said.

In the offering, creditor-turned-shareholders of Samsung Motor, the now defunct car-making unit of Samsung Group, also plan to sell their stake in Samsung Life, which they won as collateral for loans in 1999 as the vehicle unit went under court receivership.

Woori Bank, the flagship unit of Woori Finance Holding Co., will dispose of its entire stake, or nearly 5 million shares, in the life insurer, while Korea Development Bank also plans to offload its 3.8 million stocks, Samsung Life said.

Other shareholders that plan to unload their shares in the IPO include Korea Exchange Bank and a local unit of Citibank.

Samsung Life is to list its 200 million outstanding shares on the main bourse on May 12.