Cheil Industries seeks stock split ahead of IPO

Cheil Industries Inc., an affiliate of South Korea’s largest conglomerate Samsung Group, said Thursday it will carry out a stock split ahead of its initial public offering scheduled for early next year.

At a shareholders meeting earlier in the day, Cheil decided to split its shares from the face value of 5,000 won ($4.86) to 100 won. Accordingly, the company will issue 500 million shares plus 50 million preferred shares.

The price adjustment came as analysts expected the actual face value of Cheil shares to go as high as around 3 million won, becoming too expensive for retail investors.

Cheil’s IPO is expected by the first quarter of next year. (Yonhap)