KOSPO Sets Its Sights on
Posting 5 Tln Won in Sales by 2011

Designed to raise its management transparency and corporate value as public organization

Korea Plant Service & Engineering (KPS) (CEO Ham Yoon-sang) will be listed on the Korea Stock Exchange on Dec. 14 after completing a successful initial public offering (IPO).
KPS, a subsidiary of Korea Electric Power Corp., offered 9 million shares for sale to the general public, 20 percent of the 45 million shares it will issue.
The public subscription bidding for the sale of the shares, which was conducted from Dec. 3 through Dec. 5, attracted 1.34 trillion won in deposits at a competition rate of 111.83:1. This reflects the fact that investors give high credibility to the value of KPS, which has established a solid position in the domestic power generation facility maintenance market.
KPS said 1.8 million shares, or 20 percent of the total shares put up for the public sale, were allocated to its staff members'union in advance. The offering price was set at 13,300 won. The underwriter is Good Morning Shinhan Securities Co.
The first reason for the listing of KPS is that it could put an end to the debate on the privatization of KPS through its active acceptance of government policies, KPS officials said. Secondly, they said, it will lead to the reconsideration of introducing a competition system designed to secure its corporate value for the future. Third, it is designed to raise international credit ratings and recognition, while the fourth reason is to diversify its sources of capital. Fifth, they said, it will encourage employees'participation in shareholdings and performance through the introduction of the employee stock ownership system. Lastly, they said, it will have an impact on diluting shareholdings.
Taking a look into the process of the public sale, the government submitted the partial sale of KPS shares without preconditions of privatization to the 7th Public Organization Operation Committee convened on July 18. In an economic policy deliberation committee, presided over by the minister of finance and economy on July 30, the government selected KPS as one of the companies subject to listing on the Korea Exchange. Korea Electric Power Corp.'s 10th board of directors'meeting, which was convened on Aug. 24, approved the plan to list KPS, which was passed by KPS'board of directors on Sept. 11.
KPS submitted an application for a preliminary examination into its listing to the Korea Exchange on Oct. 15 before it presented its application for approval to the Financial Supervisory Service on Nov. 5.
KPS also participated in IR sessions publicizing 20 companies to foreign investors, held in such places as Hong Kong from Nov. 4 through Nov. 9. On Nov. 21, KPS held an IR session for major institutional investors at the Yeouido 63 Building and another session for general investors at the Korea Exchange in Yeouido. nw

KPS CEO Ham Yoon-sang