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| KTB Investment & Securities co-CEO Lee Byung-chul |
KTB Investment & Securities is facing an outcry from shareholders after it recently decided to delay the initial public offering (IPO) of KTB Network.
The brokerage's venture capital unit received the preliminary approval for its IPO from the Korea Exchange on Nov. 1, but has yet to conduct a book building to date.
"There have been various unfavorable factors in the nation's stock market since the end of last year. We don't think we can achieve our goal through the IPO," a KTB Investment & Securities official said.
"We will not submit the application during the six-month valid term for an IPO, which expires in April."
According to the Korea Exchange, share price of KTB Investment & Securities opened at 3,035 won per share on the March 14 session, down 1.94 percent from the previous session opening.
The brokerage's share price peaked at 6,900 won per share on Feb. 27 last year, but has since plunged into the 2,000 won level in December. It has managed to return to its current 3,000 won level January and stay there since.
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| KTB Investment & Securities co-CEO Choi Seok-jong |
The securities firm enjoyed a short rally last week after announcing its plan to list its local corporate body in Thailand by the end of this year, but is unlikely to continue the momentum because of its decision to delay its venture capital unit's IPO.
KTB Network is considered to be the brokerage's cash cow. It is fully owned by the brokerage.
Sources said KTB Investment & Securities is expected to attract 100 billion won ($88.11 million) if it goes public.
"The brokerage is definitely not satisfied with the size," said a brokerage IPO expert. "They may believe the market is still bearish now."
Shareholders disagree.
"KTB Investment & Securities is a company started with 300 billion won capital. However, the firm's market capitalization is currently at around 180 billion won. Management should do something about it," said a shareholder.
The brokerage said Tuesday that it will list its local corporate body in Thailand on the Stock Exchange of Thailand by the end of the year, expecting to attract about 10.8 billion won by offering a total of 16.77 million in shares.
If listed, the brokerage's local unit will be the first foreign securities firm to go public in Thailand since 2003.
