Samsung SDS spotlighted in new OTC market

Samsung SDS, which filed for preliminary examination last week for an initial public offering, was highlighted in the new over-the-counter market.

According to the Korea Financial Investment Association, trading volume of the nation’s newly revamped OTC market leaped some tenfold, with shares of Samsung SDS, an IT unit of Samsung Group, making marked gains ahead of its scheduled listing within the year.

KOFIA recently eased entry rules and disclosure requirements to widen access to the unlisted trading market, especially for blue chip stocks, to enliven transactions. Some 1.5 million unlisted shares changed hands on the OTC market, totaling 4.89 billion won ($4.82 million), during the week following its new opening on Aug. 25.

The most noted and watched stock in the new K-OTC market is the new entrant Samsung SDS. Shares of the company jumped 492 percent over the five days since the market opening to 281,500 won. It rose to as high as 301,000 won last Wednesday.

The company’s IPO announcement in early May raised speculations that Samsung Group is getting ready to transfer management to the third generation of the conglomerate’s owner family, led by Lee Jay-yong, currently the vice chairman of the business group’s crown jewel Samsung Electronics. (Yonhap)