Woori Bank shares rise before Friday bidding round

Woori Bank shares rallied Thursday on hopes of a successful bidding Friday, the fifth attempt by the government to privatize a 30 percent stake in the bank.

The bank’s shares have seen steady growth since late September when the Financial Services Commission announced its plan to sell the 30 percent stake in 4 to 8 percent splinters to multiple investors without managerial rights for the bank. 

On Thursday, the bank’s shares jumped 3.29 percent to close at 12,550 won.

A total of 18 institutional investors submitted letters of intent to the Korea Deposit Insurance Corp., the current largest shareholder of the bank, in October in a preliminary bidding. The FSC’s Public Fund Oversight Committee in charge of the privatization made a short-list including 17 likely bidders, according to sources.

However, it remains unclear how many of the 17 bidders will take part in the main bidding Friday. Due to the appreciated market value of the bank, some investors may withdraw from the bidding, a market source said.

“It seems reasonable that some of the preliminary bidders might consider the bidding price more seriously amid the high volatility in the global financial market in the aftermath of the US presidential election,” a researcher at a foreign investment bank told The Korea Herald.

The bidding will close at 5 p.m. on Friday. The financial authority will announce the final bidders next Monday.

By Song Su-hyun  (song@heraldcorp.com)