Seoul Guarantee Insurance made an impressive debut on the Kospi stock market, showcasing a 23% surge in its stock price despite initial market apprehensions. The Korea Exchange reported that Seoul Guarantee Insurance closed its first trading day at 32,000 won per share, a significant increase from its offering price of 26,000 won. The stock opened with a 7.88% gain and briefly peaked at 32,150 won during the trading day.

The market had exhibited a cautious stance leading up to the debut, with concerns surrounding a potential market slowdown and fears of overvaluation. The offering price was set at the lower end of the projected range due to subdued demand forecasts from institutional investors and lackluster results during the public subscription phase. Despite these challenges, Seoul Guarantee Insurance managed to exceed expectations with its debut performance.

Investor sentiment was swayed by the company’s focus on providing shareholder returns. By positioning itself as a dividend stock, Seoul Guarantee Insurance aimed to attract long-term investors with a promise to distribute 2 trillion won annually in dividends over a three-year period. Additionally, the insurer announced a year-end dividend of the same amount for 2024, offering an attractive incentive to shareholders, with an estimated payout equivalent to approximately 11% of the offering price for those holding shares until April.

As South Korea’s sole comprehensive guarantee insurance provider, Seoul Guarantee Insurance now commands a market capitalization of 2.23 trillion won, securing the 144th position on the Kospi and ranking fifth among insurance stocks. The primary objective of the company’s listing was to enable its largest shareholder, the Korea Deposit Insurance Corporation (KDIC), to divest its stake. KDIC, which had invested around 5 trillion won in public funds in Seoul Guarantee Insurance, managed to recover 181.5 billion won through the IPO, retaining an 83.85% stake in the company.

Seoul Guarantee Insurance’s successful debut on the Kospi amidst market uncertainties underscores the resilience and appeal of the company to investors. By emphasizing shareholder value through dividend payouts and strategic positioning, the insurer has positioned itself as a promising player in the South Korean insurance sector.