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Hyundai Card asks banks to pitch for IPO position: spokesperson
Posted on Tuesday, 08 October 2019 08:29
Hyundai Card is launching a bake-off for banks to pitch for a position on an initial public offering (IPO) that could reportedly value the South Korean credit card company at roughly KRW 2,500 billion (USD 2.09 billion). A spokesperson told the media the Seoul-headquartered affiliate of Hyundai Motor expects to receive responses to the proposal by 22nd October and noted a float would be an opportunity to expand capital and improve management transparency. Cited by the Korea Herald, Ha Young-jin, added the usual caution: “But at the current stage, it’s difficult to say that we’ll follow through the entire process.” Meanwhile, the media has reported Hyundai Card is pursuing an IPO to provide existing shareholders with a way of cashing in on their investments. Sources told the Korea Herald they believe the company may aim to gain admittance to Korea Composite Stock Price Index by next year. Hyundai Motor acquired the credit card company - originally known as Diners Club Korea - in 1995; changed its name in 2001; launched the signature M Card in 2003; and introduced GE Capital as a shareholder in 2005 as part of a strategic alliance. The overseas investor sold its shares in Hyundai Card in 2017 when General Electric started cutting back on the size of its financial business to focus on its industrial activities. GE Capital offloaded its entire 43.0 per cent stake to Hyundai Motor affiliate Hyundai Commercial (19.0 per cent), Hong Kong-based Affinity Equity Partners (10.0 per cent), GIC (9.0 per cent) and Carlyle Group subsidiary AlpInvest (5.0 per cent). Should Hyundai Card announce plans to hold an IPO, it would be the country’s second-ever listing by a credit card issuer, according to Zephyr, the M&A database published by Bureau van Dijk. Zephyr shows Samsung Card is currently the only one to have gone public as it floated an 11.4 per cent stake for USD 621.16 million in June 2007. © Zephus Ltd