Forecast, SGI Seoul Guarantee to Re-pursue Listing

The Korea Deposit Insurance Corporation (KDIC) announced on the 19th that it will once again pursue the listing of SGI Seoul Guarantee Insurance on the Korea Exchange.

According to KDIC, the Public Fund Management Committee reviewed and approved the "Amendment to the Plan for the Sale of Seoul Guarantee Insurance Shares" at a meeting held the previous day. While maintaining the overall framework of the existing roadmap, flexibility was enhanced to minimize the impact on the market.

Previously, KDIC attempted to list the company in October last year, but withdrew the IPO after the demand forecast was weak and it became impossible to maintain even the lower end of the desired public offering price (39,500 KRW).

At this meeting, the committee members agreed that re-pursuing the IPO is necessary considering market price discovery and ease of subsequent sales. Accordingly, the committee decided that KDIC will, in principle, sell at least 10% of the total issued shares of SGI Seoul Guarantee Insurance, of which it holds 93.85%, through an initial public offering (IPO) in the first half of 2025 (secondary sale).

KDIC plans to sell the remaining minority shares in multiple rounds through bidding or block sales until the redemption fund is liquidated after the listing is completed. However, the quantity for each sale will not be specified, and market conditions such as investor demand will be considered to minimize the impact on the stock price.

Regarding the sale of controlling shares, KDIC stated, "As discussed at the Public Fund Management Committee in 2022, we plan to comprehensively review the nature and scope of SGI Seoul Guarantee Insurance’s business and policy directions related to the guarantee insurance industry in the future."

Following this committee resolution, KDIC will prepare to re-pursue the IPO with SGI Seoul Guarantee Insurance, aiming for a listing in the first half of next year. Specific details such as the timing of the listing, sale volume, and offering price will be finalized through further discussions at the Public Fund Management Committee.

SGI Seoul Guarantee Insurance also plans to enhance corporate value through measures such as improving management efficiency based on external evaluations and strengthening shareholder return policies, working together with KDIC and financial authorities to ensure a successful IPO.

This content was produced with the assistance of AI translation services.