SGI vows to become Korea's leading dividend stock

Lee Myung-soon, president and CEO of Seoul Guarantee Insurance (SGI), speaks during a press conference at Conrad Seoul, Wednesday. Courtesy of SGI By Jun Ji-hye Seoul Guarantee Insurance (SGI), which is making its second attempt at a KOSPI listing, will implement a more proactive and differentiated shareholder return policy to become one of Korea’s leading dividend stocks, the company CEO said Wednesday. During a press conference in Seoul, SGI President and CEO Lee Myung-soon said the company made significant adjustments to pricing and shareholder return policy, unlike its previous initial public offering (IPO) attempt in 2023.

“We expect that a more reasonable offering price, measures to ease overhang concerns and a proactive shareholder return plan will be well received by investors,” Lee said. “Through the listing, we aim to solidify our position as the country’s only comprehensive guarantee insurer and move forward with market investors as a leading dividend stock.” The company initially sought to go public in 2023 but voluntarily withdrew after a weak response in the demand forecast.



This time, the firm will offer 10 percent, or 6,982,160 shares, of its outstanding shares against a 93.85 percent stake held by its majority shareholder, the Korea Deposit Insurance Corp. The desired IPO price per share ranges from 26,000 won ($18) to 31,800 won.

This represents a 38.6 percent decrease from the previous range of 39,500 won to 51,800 won. The demand forecasting process will take place over five business days from Thursday.

Public subscription will be open for two days on March 5 and 6, with the listing scheduled for March 14. Read More SGI launches second IPO bid IPOs in Korea rise over 16% in 2024 Big-name IPO candidates draw skepticism over LG CNS’ disappointing debut SGI has set the total dividend payout for the 2024 fiscal year at 200 billion won, which will be distributed to shareholders in April. Based on the IPO price range, the expected dividend yield is estimated at 9 percent to 11 percent, a relatively higher level compared to listed nonlife insurance companies.

The firm said that the dividend record date is set for early April, and investors who participate in the public offering and hold their shares until then will be eligible to receive the 2024 end-of-year dividend. Additionally, SGI has set a target to ensure a total annual shareholder return of approximately 200 billion won over the next three years..