ING Life Insurance Korea, South Korea's fifth largest life insurer, yesterday priced its initial public offering (IPO) near the lower end of an indicative range, raising for its Asia-based private equity owner MBK Partners KRW1.1 trillion (US$974 million), reported Reuters.
ING Life's listing will be South Korea's second largest so far this year after smartphone games maker Netmarble Games Corp priced its IPO at the top of its range, raising $2.3 billion.
The insurer, which last week said its dividend payout history was an investor draw, said it can continue paying hefty dividends as it has a good capital-adequacy ratio and because it depends on higher-margin captive agents for growth, rather than independent insurance agents. It priced its IPO at KRW33,000 per share, compared with an indicative range of KRW31,500 to KRW40,000 each, ING Life said in a filing.
The pricing gives the whole company a pre-listing valuation of KRW2.71 trillion.
MBK, which bought ING Life from ING Groep for about KRW1.8 trillion in 2013, will retain about 59.1% of the insurer after the listing, an ING Life spokeswoman said.