Samsung SDS makes hot stock debut

Samsung SDS, an information technology services provider, made a splash in its debut on the Korean bourse Friday with its market value becoming the sixth largest in the domestic market.

The stock closed at 327,500 won ($298), bringing the market capitalization of the Samsung Group affiliate to 25.3 trillion won ($23 billion).

The figure is slightly lower than that of the nation’s leading steel manufacturer POSCO at 25.6 trillion won. 

Attending the IPO ceremony at the Seoul office of the Korean Exchange, the local securities exchange operator, Samsung SDS chief executive Jun Dong-soo said the stock listing would help catapult the company into the upper echelons of the global IT market.

“Samsung SDS will boldly try to make a foray into the global IT markets and become a top-notch IT services firm,” the chief executive said at the event, adding that the company will aim to deliver “the best value for stockholders and customers.”

Part of the reason the IPO received so much attention is because it will support a smooth leadership transition from the ailing Samsung chief Lee Kun-hee to his only son Lee Jay-yong, according to market watchers. 

As they pointed out, the Samsung heir apparent is the largest individual stockholder with an 11.25 percent stake in Samsung SDS. The top two corporate stakeholders are Samsung Electronics and Samsung C&T ― Samsung’s construction arm. They hold a 22.58 percent and 11.24 percent stake each.

“Samsung SDS will likely serve as a revenue source to pay taxes needed in take over control of Samsung Group,” said Yoon Hyuk-jin of Eugene Investment & Securities in a recent report.

A series of mergers and acquisitions among Samsung affiliates have taken place since chairman Lee was hospitalized following a heart attack in May.

Materials business firm Cheil Industries, which merged with battery-maker Samsung SDI earlier this year, is also scheduled to go public in December.

Samsung Group vice chairman Lee Jay-yong holds a 25.1 percent share in the materials business, which has a 20.7 percent share in Samsung Insurance, the biggest shareholder of the electronics business unit.

Some speculate that the conglomerate will establish a Samsung Electronics holding company and merge it with Cheil Industries in an attempt to streamline the conglomerate’s complex cross-shareholding structure.

By Kim Young-won (wone0102@heraldcorp.com)