Four securities firms, including Samsung Securities, Shinhan Financial Investment, Shinyoung Securities, and Hanyang Securities, are competing for the arrangement of IPO of DS Networks. DS Networks is planning to be listed on the KOSPI as the largest operator in Korea based on sales. The company’s value after listing is expected to reach KRW 1 trillion. DS Networks has set a target date for IPO at the end of next year.
On June 24, investment banking (IB) industry announced that DS Networks distributed a Request for Bidding Proposal (RFP) to major securities companies last week for the selection of organizer of IPO and started screening among Samsung Securities, Shinhan Financial Investment, Shinyoung Securities, and Hanyang Securities that participated in the bidding. Started the selection of the sponsor.
DS Networks, established in 1981, is one of the largest developers in Korea based on sales, the sales of last year was KRW 1.337.5 trillion (consolidated) and operating profit was KRW 124.9 billion. The company grew up by successfully completing projects such as Busan Haeundae New Town Development in 2011, Songdo Landmark City, and Seoul Magok District. The owner family, including Chairman Chung Jae-hwan, owns 100% of the shares, and the financial investment industry predicts that if it goes public, the company’s value exceeds KRW 1 trillion.
An official from the securities industry said, “I heard that the target date for IPO is late 2022.” “The company will prepare for IPO including selection of securities company in charge of arranging IPO,” he added.
When DS Networks is listed, it will become the second listed company among domestic operators. SK D&D, the fourth largest operator in terms of sales, (with sales of 699.7 billion won in 2020), was listed on the stock market in 2015. The current share price of SK D&D is 35,750 won (as of the 23rd closing price), and its market cap is 678.898,363,000 won.
Chosun BIZ / Reported by Jeong Hae-yong