By Asia Insurance Review | November 19, 2021
Kyobo Life Insurance, which the third largest life insurer in South Korea by assets, plans to go public on the Korea Exchange(KRX) by next year, with the initial public offering aimed at laying the groundwork to turn the company into a financial group with a holding company structure to offer a wider range of financial services other than insurance.
The IPO process had stalled during the past few years because of a long-drawn fight against minority shareholders, reported The Korea Herald.
A board meeting was held earlier this week to discuss ways to file for the IPO on the KRX before the end of this month and to complete the IPO in the first half of 2022, the company says in a statement.
Kyobo Life did not disclose details as to how many shares it will float for the 2022 IPO or how much it wants to raise via the IPO. But it said the IPO proceeds will be used to secure new growth engines, invest in new business areas, improve brand value and allow its shareholders to cash in on their earlier investment in Kyobo Life.
Kyobo Life added that the IPO is a preemptive measure, aimed at raising new capital before Korean insurers face tougher rules governing for their balance sheets. New accounting standards, including International Financial Reporting Standard 17, go into effect in 2023.
Kyobo Life’s bid to go public, announced in December 2018, has been stalled by a shareholders’ feud between chairman Shin Chang-jae and Affinity Equity Partners, which leads a minority shareholder group. The contention is over whether the minority shareholders are eligible to exercise their rights to sell their stake to Shin—a put option— — at a certain strike price.