Woori Investment's IPO market entry set to intensify SME underwriting rivalry

Woori Investment & Securities Co. has launched an initial public offering-dedicated unit within its corporate finance division in its foray into the IPO underwriting market.

The South Korean securities firm targets small and medium-sized enterprises (SMEs) aiming to go public, a segment overlooked by global investment banks but fiercely competed among local players.

According to investment banking sources on Tuesday, Woori Investment & Securities has recruited five IPO specialists from Korea Investment & Securities Co. (KIS), including Park Sung-bong.

Park, a seasoned banker who previously spent over 15 years at KIS' IPO division, is now leading Woori’s IPO unit.

In March, Woori secured an IPO underwriting license from the Korean financial authorities, which allows the brokerage arm of Woori Financial Group to offer IPO underwriting and derivatives trading services.

Aiming to clinch its first IPO mandate within the year, Woori will strengthen its capabilities through close collaboration with its affiliate Woori Bank.

Its local peer, Meritz Securities Co., is intensifying its efforts in the IPO market despite lacking a banking arm.

In the second quarter of this year, Woori Investment & Securities posted a more than tenfold increase in net profit and operating profit, reaching 15.9 billion won ($11.4 million) and 13.7 billion won, respectively.

Write to Seok-Cheol Choi at dolsoi@hankyung.com
 

Yeonhee Kim edited this article.