A South Korean insurance giant has become the first company
wholly-owned by a private equity firm to list in the country.
But its unique corporate structure has seen it subject to an
unusual regulatory rule.
ING Life Insurance Korea, owned by Seoul-based MBK Partners,
successfully raised $977 million from its initial public
offering (IPO) on the Korea Exchange (KRX). This was the
second-largest listing this year after South Korean gaming
company Netmarble’s $2.3 billion IPO.
But as this was an IPO raised by an issuer wholly-owned by a
private equity firm, there was a regulatory issue in respect of
the listing: the KRX required MBK to adopt a one-year lockup on
its shares, which differs from the one-year period imposed on
ING's ownership structure influenced the listing rules"A
one-year lockup was required because it was expected that [MBK]
would ultimately sell the shares," noted Dong Chul...