MBK-owned ING Life to raise $972m in Korea IPO

ING Life is selling approximately 33.5 million shares at KRW33,000 apiece, towards the low end of its indicative range, according to a filing. The offering will give the company a market capitalization of KRW2.7 trillion, well in excess of the KRW1.84 billion MBK paid for the business in 2013. It took a 90% stake, with ING Groep retaining the balance, although the PE firm is now listed at the 100% owner.

All of the shares being sold in the IPO are held by MBK. Following the offering, it will have 48.5 million shares, or a 59.15% stake. The private equity firm financed the initial acquisition through a KRW1 trillion ($846 million) syndicated loan. It completed a $119.8 million leveraged recap in 2015.

Established in 1987, ING Life Korea is the country's fifth-largest insurer with KRW30.7 trillion in assets as of year-end 2016. It sells protection, savings, annuity and variable products to individual and group customers through a nationwide network comprising eight regional headquarters and 94 branch offices.

Total domestic life insurance premiums in Korea came to KRW120.4 trillion in 2016, up from KRW117.2 trillion the previous year. The country’s big three domestic insurers – Samsung Life, Hanwha Life and Kyobo Life – accounted for 45.7% of the market. ING Life was the largest of the foreign players, with a 3.6% share.

The company posted revenue of KRW4.26 trillion in 2016, down from KRW4.68 trillion the year before. Net profit fell from KRW304.8 billion to KRW240.7 billion over the same period.

MBK made the ING Life investment through its third fund, which closed at $2.7 billion in 2013. The private equity firm completed a first and final close on Fund IV last December at $4.1 billion.

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• Topics
• North Asia
• IPO
• Financials
• South Korea
• MBK Partners
• Exit