Cheil Industries shares continue to overshoot estimated value
By Yoon Ja-young Shares of Cheil Industries, which debuted on the stock market in December, are continuing to soar.Strong demand has pushed the stock way above the target price suggested by analysts, but they now have a problem estimating how far it will go as the price is not based on fundamentals.Cheil Industries closed at 171,000 won, Friday, rising over 8 percent from the 2014 closing price on Dec. 30. The stock, which debuted on bourse on Dec. 18, drew huge attention from investors even before its debut. When it took subscriptions for the IPO, it set a record by being 195 times oversubscribed, with deposits totaling 30.06 trillion won.So far, those who bet on Cheil Industries have made the right decision, as its shares have risen by 3.2 times its IPO price of 53,000 won.Cheil Industries has become the ninth biggest company in terms of market cap, now standing at 22.1 trillion won. It has already surpassed SK Telecom and Samsung Life Insurance, and is expected to surpass Hyundai Mobis soon.Before the IPO, analysts suggested between 70,000 won and 100,000 won as the tar
