Their current shortlist consists of 5 foreign banks and 10 local banks. The foreign banks are Goldman Sachs, Credit Suisse, BofA-Merrill, BNP Paribas and Citigroup, while the domestic banks include Woori Investment & Securities, Daewoo Securities, Samsung Securities, Korea Investment & Securities, Mirae Asset Securities, and Shinhan Investment Corp.

The world’s largest shipbuilder, Hyundai Heavy Industries, which owns a 91.1 percent stake in Hyundai Oilbank, is running the public float process and plans to narrow down the shortlist on or around October 21.

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Initially, the minimum was set to 4 trillion won, but objections from the Big 5, Daewoo, Samsung, Hyundai, Woori, and Hankook, cited excessive barriers to entry and the requirement was reduced to 3 trillion won.

On June 20, a representative of the financial authorities said that the government plans to gradually raise the minimum equity capital while building up the industry with step-by-step measures. The requirement will eventually be brought back to 4 trillion won as the capacities of the smaller securities firms increase.

Data as of the end of March 2011. Funds Required calculated as the amount needed to meet the 3 trillion won minimum.

The representative added that an easing of the standards for initial settlements in the hedge fund market will occur within the year. On June 28, the proposal will be reviewed at a public hearing whereupon the government will implement the regulation.

Source: translated from the Korea Economic Daily

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The Korea Economic Daily reported -

Woori Investment Securities, the South Korean brokerage, will likely list a special purpose acquisition company (SPAC) in April, and the size may be as much as KRW 45bn (USD 39m).

The report added that Woori is planning to acquire a company in the environmental, biotechnology, healthcare or alternative energy sectors.

Shinhan Investment, another South Korean brokerage, also plans to list a SPAC in April, with the size estimated to be KRW 35bn (USD 31m).

The report added that Shinhan is also looking to make acquisitions in the environmental, biotechnology, healthcare or alternative energy industries.

Whilst a report in Korea’s Money Today newspaper stated -

Meritz Securities and A.T. Kearney Korea, the South Korean brokerage and consulting firms, will jointly list a SPAC in May.

The report, citing information released by Meritz Securities, noted that it plans to raise KRW 30bn (USD 21m) for the SPAC.

Samsung Securities, another Korean brokerage, has agreed to invest KRW 5.2bn in the SPAC, prior to the IPO, and was also hired as the manager for the offering.

Meritz Securities and AT Kearney completed the registration of the SPAC on 24 February, and plan to apply for preliminary evaluation this month.

The SPAC would look for a company involved in new technology with a strong market presence, the report added.

See here for more stories on Korea’s growing SPAC market.

(Sources: Korea Economic Daily, Money Today)

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