Hyundai Card shortlists for its planned IPO Any securities firms with a credit card affiliate have been excluded from the shortlist
이 기사는 2019년 11월 11일 08:00 더벨 유료페이지에 표출된 기사입니다.South Korea's Hyundai Card has shortlisted six securities firms for its planned initial public offering (IPO).
Hyundai Card, the credit card arm of Hyundai Motor Group, has drawn up a shortlist of securities firms to lead its listing and sent notifications on November 5, according to investment banking industry sources.
Three local securities firms - NH Investment & Securities, Korea Investment & Securities, Mirae Asset Daewoo - and three overseas banks - JP Morgan, Morgan Stanley, Citi Global Market Securities - are included in the shortlist. The card company is widely expected to pick a total of two bookrunners, one from domestic and overseas firms each.
What is notable is that securities firms belonging to the country's conglomerates with a credit card unit have all been excluded from the shortlist, which was the case for Shinhan Investment and KB Securities. Both firms received a request for proposals (RFP) from Hyundai Card, but failed to move on to the next phase of the competition.
This is due to the risk of information leakage to competitors. Such a practice is considered an unwritten rule in the investment banking industry. That is why many industry watchers were not surprised by the results.
Shinhan Investment has Shinhan Card as its affiliate, which accounts for largest market share of 21 percent in the domestic credit card industry as of the end of June this year. KB Securities also has KB Kookmin Card as its affiliate with the third largest market share of 17.2 percent. Hyundai Card is fourth in the industry, holding 15.6 percent market share.
Despite industry practice, Hyundai Card sent out a RFP to both securities firms in the first place. Shinhan Investment was reportedly among the names of the card company's mind, while KB Securities received a RFP at its own request.
This move by Hyundai Card was intended to listen to opinions from the two securities firms, whose credit card affiliates have a more dominant position in the market, industry insiders said. As a result, both firms put efforts into writing their proposals in vain.
"Many raised an eyebrow when [Hyundai Card] sent a RFP to Shinhan Investment and KB Securities despite the unwritten rule in the industry. This seems because it wanted to get various opinions from as many bankers as possible, as any issuer would do," said an investment banking industry insider.
(By reporter Lee Kyung-ju)
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