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| The headquarters of Kyobo Life in central Seoul / Courtesy of Kyobo Life |
Life insurer seeks alternative following rejection by KRX
By Anna J. Park
Kyobo Life is examining the option of pursuing an overseas listing on the U.S. stock market, as its attempt to go public on the Korean stock market was denied two months ago.
According to financial industry sources on Tuesday, the life insurer has begun internal discussions on the topic of going public on the U.S. stock market with a preference for the New York Stock Exchange (NYSE).
It's not the first time that the life insurer has examined the option of an overseas listing. Kyobo Life had also studied and considered going public on other major stock markets, including those of the U.S., Hong Kong, Shanghai and London. Back then, the option was more considered long-term strategic planning for the company's various possible listing scenarios, given that major local financial groups like KB and Shinhan are successfully dual-listed on the Korean and U.S. stock markets.
However, market watchers say Kyobo Life's discussions on the overseas listing this time around seem to be more related to seeking an alternative breakthrough for the firm's growth, as the company's listing efforts on the Korean stock market had met a major obstacle.
The company's application for a preliminary round of IPO assessment earlier this year at the Korea Exchange (KRX), the operator of local bourse markets, was turned down in July due to ongoing legal disputes among the firm's major shareholders. Kyobo Life has been mired in years-long legal disputes with its financial investors, including Hong Kong-based Affinity Equity Partners, both at the International Chamber of Commerce (ICC) and in local courts over issues related to the financial investors' right to exercise their put options.
Although the KRX does not publicly announce reasons for turning down a company's IPO application, market watchers view that the unending legal disputes among shareholders played a key role in the KRX's decision not to allow the life insurer's listing on the local stock market. It is the first case in the past three years that the KRX declined to give the green light to a company that applied for the preliminary IPO assessment to go public on the country's main benchmark KOSPI market.
Regarding the possibility of pursing a listing on the U.S. stock market, Kyobo Life responded that nothing is set for the time being, while acknowledging that the overseas listing has been mulled over as one option among the firm's possible future moves.
"Nothing has changed about Kyobo Life's pursuance of an IPO for the sake of the firm's long-term development and growth. As the possibility of going public on the local stock market in the immediate future is uncertain, the company has been examining various alternatives, including listing on the U.S. stock market. Yet, nothing specific has been decided regarding the U.S. listing plan," an official at Kyobo Life told The Korea Times.
