Air Busan IPO priced at $3.18, bottom end of desired range

South Korea’s budget carrier Air Busan, a subsidiary of the country’s full-service carrier Asiana Airlines, on Monday priced its initial public offering (IPO) at the lower end of its desired range of 3,600 won ($3.18) apiece, reflecting the general lethargy for Korean equities and lingering skepticism over the parent carrier with liquidity woes.

The company said on Monday the offering of 5,207,000 shares drew 237 institutional investors during the book-building session on Dec. 12, recording oversubscription rate of 23.9 times.

The pricing was made at the bottom of 3,600-4,000 won guidance, bringing the issuer fresh capital of 187.45 billion won. Of the issues, 80 percent, or 4,165,600 shares will be available to retailers.

Mirae Asset Daewoo Co. and BNK Securities Co. co-led the IPO. The shares will debut on Dec. 27.

The newcomer joins the market at a poor time with sentiment subdued amid doubts about the Korean and global economy in the coming year.

Since September, six Korean companies including CJ CGV and Kakao Games have called off their IPO plans citing poor market conditions.

On Tuesday, shares of Asiana Airlines fell 2.68 percent to close at 4,175 won.

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