The company raised a total of US$363 million (373.4 billion Won, £191 million) in its Initial Public Offering in London and Seoul - the largest IPO by a Korean company anywhere in the world since July 2004. Kumho Tire’s offering comprises 11.2 million common shares or 22.4 million Global Depository Receipts, with one common share representing two GDRs.
To celebrate the occasion, Mr. Sam Koo Park, Chairman of Kumho Tire and Kumho Asiana Group today opened the London Stock Exchange’s markets by switching on ‘The Source,’ a specially commissioned artwork in the main atrium of the London Stock Exchange’s new building in Paternoster Square.
Mrs. Clara Furse, Chief Executive of the London Stock Exchange, said: “We are delighted that Kumho Tire has chosen London for its listing outside of Korea. As gateway to Europe and the world’s most international market, London offers Kumho Tire access to investors from across the world. We hope to see many more Korean companies join those already listed and traded here in London.”
Since its founding in 1960, Kumho Tire has progressed to become the 11th largest tyre manufacturer in the world, with exports to more than 150 countries. The company has a 39% market share in South Korea and has well established manufacturing facilities in China.
Kumho Tire began unconditional trading on 16 February 2005. The IPO brings the total number of Korean companies listed on the London Stock Exchange to 10, with their shares traded on the Exchange’s International Order Book (IOB). In addition there are a further 7 Korean Depository Receipts traded on the IOB, and Korea is the second most active country for IOB trading. In 2004, the Exchange’s member firms traded approximately US$ 16.6 billion of Korean securities on the IOB, an increase of 81 per cent since 2000.
In 2004, the London Stock Exchange attracted a total of 293 IPOs to the Main Market and AIM, of which 49 were international, accounting for 79 per cent of all IPOs in Western Europe. So far this year, there have been a total of 26 IPOs on the London Stock Exchange’s markets, raising a total of US$2.04 billion.
JPMorgan acted as the sole global coordinator and bookrunner for the international offering of Global Depositary Receipts, and Daishin Securities acted as the lead underwriter for the Korean offering of common shares.
