Kyobo Securities raises $253M to chase comprehensive investment-bank status
What's the deal? Kyobo Securities is raising US$251.5M through an issue of redeemable convertible preferred shares (RCPS), its board approved on October 22. The proceeds will fund working capital and, the firm says, strengthen its core businesses and expand into new areas.
The terms: The deal splits into two third-party placements of US$83.8M and US$167.7M, totalling 11.34 million non-voting shares priced at US$22.2 each. The US$83.8M tranche carries a 5.814% initial dividend; the US$167.7M tranche pays 5.993%.
Who's in? Korea Investment & SecuritiesDealroom has a profile for this one. Try Dealroom → takes part in both tranches, joined by Hyundai Motor SecuritiesDealroom has a profile for this one. Try Dealroom →, Trini KS 1stDealroom has a profile for this one. Try Dealroom →, KISS Plus 44th, KISS Prime 7th, and Felix KRCDealroom has a profile for this one. Try Dealroom → 2nd. All shares carry a one-year lock-up, with conversion to common stock available from 2029 and 2030.
Why now? This is Kyobo's first external capital raise in about three years, since a US$167.7M increase in 2023. The firm is targeting US$2.52B in equity by 2029, the threshold for comprehensive investment-bank status.
What's the endgame? Scale is the prize. A US$2.52B equity base expands corporate-finance capacity, while US$3.35B, plus regulatory approval, opens the commercial-paper funding business that rivals SamsungDealroom has a profile for this one. Try Dealroom → and Meritz SecuritiesDealroom has a profile for this one. Try Dealroom → recently entered.
The signal: Kyobo joins a wider Korean brokerage capital-building wave: 13 securities firms had raised or sought a combined US$7.29B by mid-October, roughly double last year's total. As one industry official put it, "Ultimately, the goal is the US$3.35B CFIC and approval for commercial paper."
Read more: en.infomaxai.com
Image credit: Ken Lund
