Press releases 2005
LONDON STOCK EXCHANGE WELCOMES KUMHO TIRE TO ITS MAIN MARKET
First Korean company to simultaneously dual-list in London and Seoul
KUMHO TIRE Co. Inc., the South Korean tyre manufacturer, was today welcomed to the London Stock Exchange’s Main Market. Kumho Tire is the first Korean company to simultaneously dual-list in London and Seoul.
The company raised a total of US$363 million (373.4 billion Won, £191 million) in its Initial Public Offering in London and Seoul - the largest IPO by a Korean company anywhere in the world since July 2004. Kumho Tire’s offering comprises 11.2 million common shares or 22.4 million Global Depository Receipts, with one common share representing two GDRs.
To celebrate the occasion, Mr. Sam Koo Park, Chairman of Kumho Tire and Kumho Asiana Group today opened the London Stock Exchange’s markets by switching on ‘The Source,’ a specially commissioned artwork in the main atrium of the London Stock Exchange’s new building in Paternoster Square.
Mrs. Clara Furse, Chief Executive of the London Stock Exchange, said:
“We are delighted that Kumho Tire has chosen London for its listing outside of Korea. As gateway to Europe and the world’s most international market, London offers Kumho Tire access to investors from across the world. We hope to see many more Korean companies join those already listed and traded here in London.”
Since its founding in 1960, Kumho Tire has progressed to become the 11th largest tyre manufacturer in the world, with exports to more than 150 countries. The company has a 39% market share in South Korea and has well established manufacturing facilities in China.
Kumho Tire began unconditional trading on 16 February 2005. The IPO brings the total number of Korean companies listed on the London Stock Exchange to 10, with their shares traded on the Exchange’s International Order Book (IOB). In addition there are a further 7 Korean Depository Receipts traded on the IOB, and Korea is the second most active country for IOB trading. In 2004, the Exchange’s member firms traded approximately US$ 16.6 billion of Korean securities on the IOB, an increase of 81 per cent since 2000.
In 2004, the London Stock Exchange attracted a total of 293 IPOs to the Main Market and AIM, of which 49 were international, accounting for 79 per cent of all IPOs in Western Europe. So far this year, there have been a total of 26 IPOs on the London Stock Exchange’s markets, raising a total of US$2.04 billion.
JPMorgan acted as the sole global coordinator and bookrunner for the international offering of Global Depositary Receipts, and Daishin Securities acted as the lead underwriter for the Korean offering of common shares.
For further information, please contact:
Richard Webster-Smith Press Office +44 (0)20 7797 1222
Notes to editors:
• About the London Stock Exchange:
The London Stock Exchange is one of the world’s leading equity exchanges and a leading provider of services that facilitate the raising of capital and the trading of shares.
The London Stock Exchange is the most international equities exchange by trading in the world and Europe's largest pool of liquidity. By the end of 2004, the market capitalisation of UK and international companies on the London Stock Exchange’s markets amounted to £3.5 trillion, with £4.7 trillion of equity business transacted over the year.
As of January 2005 there were 2,844 companies listed on the London Stock Exchange. Of these, 1,809 companies were on the Main Market, including 349 international companies and 1,035 were on AIM, including 120 international companies.
The London Stock Exchange is a Recognised Investment Exchange (RIE) under the Financial Services and Markets Act 2000 and is supervised by the Financial Services Authority.
• About the Market Opening ceremony:
The London Stock Exchange’s markets are opened by a selected dignitary or VIP, pushing a button and setting into motion “the Source” – a dynamic sculpture in the 7-storey atrium of the Exchange’s new headquarters at Paternoster Square.
The Source was unveiled by The Queen at the official opening of the Exchange’s new building on Wednesday 27 July 2004 and consists of 729 spheres, suspended on metal cables stretching the full height of the 32m, 7-storey atrium. Controlled electronically, each sphere moves independently, forming random shifting patterns or words, numbers and shapes fed in directly from the world's media.
• Pictures of the market opening ceremony will be available from 9:30am (London time) on Thursday 17th February. To obtain pictures please contact:
Simon Wheeler Press Office +44 (0)20 7797 1222