Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Samsung Securities hit by envisioned US listing of Kurly, Yanolja
A Samsung Securities branch in Seoul is seen in this April 2018 file photo. Yonhap
By Park Jae-hyuk
By Park Jae-hyuk
Samsung Securities has been viewed by market insiders as one of the parties most likely to lose out if Kurly and Yanolja go through with their initial public offerings (IPOs) in the United States instead of Korea as is widely expected.
Earlier this year, the securities firm lost its status as the lead underwriter for Kurly's listing on the tech-heavy Kosdaq market, after the operator of the fresh food delivery platform Market Kurly hired Goldman Sachs, Morgan Stanley and JPMorgan in March as the lead underwriters for its listing on the New York Stock Exchange within this year.
Given that no Korean securities firms are licensed to serve as underwriters in the U.S., Kurly's replacement of the underwriters was inevitable for its Wall Street debut.
The contract cancellation led Samsung Securities to miss out on opportunities to earn billions of won in commission and build its reputation as a firm handling a unicorn startup's listing, despite the money and personnel it used for consulting and due diligence after it was selected as an underwriter in 2018.
IPO underwriters in Korea tend to get paid once the deal is successfully completed. They receive nothing when firms give up on their plans to go public here.
Samsung Securities, which was selected as one of the underwriters for Yanolja's KOSPI listing last November along with Mirae Asset Securities, is therefore feared to suffer additional misfortune from the hotel booking app operator's envisioned IPO on the Nasdaq.
Although Yanolja has maintained the stance that details about its listing overseas, such as the specific region, have not been decided on yet, a growing number of market insiders expect the company to choose the Nasdaq over the KOSPI, based on an investment as high as 2 trillion won ($1.8 billion) from SoftBank Vision Fund.
A Yanolja spokesman has denied news reports about his company's ongoing negotiations with the investor, saying the only fact is that it has received offers from multiple foreign brokerages regarding listing overseas.
However, the denial has been seen by many as an attempt to comply with non-disclosure agreements until the deal is closed.
Yanolja has yet to hire a foreign underwriter for its overseas IPO, although Morgan Stanley has been regarded as the strongest candidate.
If Yanolja drops its plan to go public here, Samsung Securities and Mirae Asset Securities will lose their underwriter status and the opportunity to earn billions of won in commissions, regardless of their spending on the app operator's listing.
A Samsung Securities spokeswoman said the possible contract cancellation will have a limited impact on the company because it has already signed contracts for large-scale IPOs this year with KakaoPay and HK inno.N.