The government sold 23.24 million shares in the Industrial Bank of Korea (IBK), equivalent to 4.2 percent of the bank’s total shares, in a block trade before the start of the stock market on November 27. The shares were sold at 11,400 won per share, a 5 percent discount to the closing price of the previous day, 12,000 won. The sale earned the government 265 billion won, while bringing down the government stake in the policy bank from 68.8 percent to 64.6 percent.
The shares were sold equally to domestic and foreign investors.
The government had been planning to sell its stake in the policy bank since 2006, and today’s sale is expected to create a favorable environment for the sales of the stake left to be sold. The 2013 budget requires the government to trim its IBK holding to 50 percent plus one share in order to support small- and medium-sized enterprises (SMEs).
In 2013, the government has been monitoring the market situation and holding non-deal roadshows in New York, London and Hong Kong, while having a consultation with joint public-private expert committees, in order to successfully sell the stake.
The government expects the sale will lead to an increase in the value of IBK shares in line with an increase in the number of stocks available in the market.
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