South Korea plans to raise a combined 184.2 billion won ($199.9 million) in 2007 via initial public offerings of three small state-run firms, including Korea District Heating Corp, the government said on Monday.
Seeking to dampen a red-hot stock market, which faces a dearth of private listings, the government has picked three companies out of a slate of 15 state firms previously identified as possible IPO candidates.
The companies to go public this year also include IBK Capital, a unit of Industrial Bank of Korea and Korea Plant Service and Engineering, a wholly-owned unit of Korea Electric Power Corp, the government said in a statement released after an economic policy meeting.
It said it would also consider floating one or two more companies. "If supply-demand imbalances in the stock market continue, it could raise market volatility and hurt the soundness of the market. We need to push for listings of healthy state companies to expand the local capital base," the statement said.
Korea District Heating Corp is expected to sell 20 percent of the company, or about 1.7 million shares, at 38,930 won apiece, raising 67.6 billion won. Korea Plant Service and IBK Capital are also expected to float 20 percent of their share capital, to raise 68.2 billion won and 48.4 billion won.
As of Monday's close South Korea's benchmark KOSPI had surged over 32 percent so far in 2007, buoyed by ample liquidity, with Samsung Card's $620 million IPO in June the only listing on the main board this year.
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