South Korean government upsizes IBK block sale to USD250 million
The South Korean government has upsized the sale of part of its stake in state-run Industrial Bank of Korea (IBK) to USD250 million, Reuters reported.
According to a term sheet, the country's finance ministry increased the offering from an initial 13.16 million shares to 23.24 million shares.
The offering will be priced at KRW11,400 per share, a 5% discount from IBK's closing price of KWR12,000 on Tuesday, the report said.
South Korea's finance ministry owns a 68.9% stake in IBK worth USD4.3 billion. It will reduce its holding in the state-owned lender to 64.6% after the sale, Reuters said.
Reuters said that the block sale comes as the finance ministry is projecting a tax revenue shortage of up to KRW8 trillion (USD7.55 billion) this year.
Investment bank Bank of America Merill Lynch, JP Morgan, Korea Investment and Securities and Samsung Securities will be acting as joint bookrunners in the offering, the report said.