Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Equity Capital Markets

Orange Life Insurance, Ltd.  / Equity Capital Markets

<p>MBK Partners has done a great job of convincing foreign institutional investors that  <a href="https://www.smartkarma.com/entities/23999" target="_blank" data-smartkarma-citation="entities:23999:1">ING Life Insurance Korea Ltd. (079440 KS)</a> could continue to generate high dividends (50+% payout ratio) for years to come. With the company's "seemingly" sound and healthy financial structure, many foreign institutional investors seem to be feeling comfortable with MBK Partners' claim. But unfortunately, MBK hasn't had this kind of success with local investors (both institutional and retail). We now have retail subscription results, and they are very shocking. After the devastating first retail subscription day, ING Life's final retail subscription was even less than what it has originally allocated. It actually recorded an undersubscription of 0.82:1. In fact, Korea's local institutional investors hadn't done much differently. If we computed local institutional subscription rate based on stock allotment, ING Life IPO would record an undersubscription of 0.69:1, whereas foreign institutional investors would be an oversubscription of 3.18 times. What factors have really made the differences? And how will ING Life perform after the IPO? I have personally thought about these questions, and following is what I am thinking.</p>

MBK Partners has done a great job of convincing foreign institutional investors that  ING Life Insurance Korea Ltd. (079440 KS) could continue to generate high dividends (50+% payout ratio) for years to come. With the company's "seemingly" sound and healthy financial structure, many foreign institutional investors seem to be feeling comfortable with MBK Partners' claim. But unfortunately, MBK hasn't had this kind of success with local investors (both institutional and retail). We now have retail subscription results, and they are very shocking. After the devastating first retail subscription day, ING Life's final retail subscription was even less than what it has originally allocated. It actually recorded an undersubscription of 0.82:1. In fact, Korea's local institutional investors hadn't done much differently. If we computed local institutional subscription rate based on stock allotment, ING Life IPO would record an undersubscription of 0.69:1, whereas foreign institutional investors would be an oversubscription of 3.18 times. What factors have really made the differences? And how will ING Life perform after the IPO? I have personally thought about these questions, and following is what I am thinking.

ING Life Insurance IPO Part 6 - Subscription Result Analysis & Post IPO Forecasts

South Korea

Mirae Asset Life Insurance Co., Ltd. provides life insurance and related products.  The Company offers a wide range of services including retirement pension, non-saving products, individual savings, bank assurance, and other financial consulting services.

Mirae Asset Life Insurance Co., (085620 KS)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

ING Life Insurance IPO Part 6 - Subscription Result Analysis & Post IPO Forecasts

MBK Partners has done a great job of convincing foreign institutional investors that ING Life Insurance Korea Ltd. (079440 KS) could continue to...

Sanghyun Park