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Biz News Korea(Eng)
Meritz Securities offers rights to qualify for prime brokerage
- Collected
- 2017.06.29
- Distributed
- 2017.06.30
- Source
- Go Direct
Meritz Securities held a board of directors meeting on Wednesday and voted in favor of a decision on offering in 13,804,345 preferred shares that can be converted into common stocks from 2022 to 2024 to a group of securities companies. The rights carry the option to be converted into shares without any voting power at 9,200 won, 97.8 percent over the stock’s one-year average. At 1:41 p.m. on Thursday, shares of Meritz Securities were up 6.82 percent at 5,090 won.
The payment would be made on Friday, boosting the brokerage house’s net worth to 3.09 trillion won and making it eligible to seek license for prime brokerage, a bundled package of investment banking and securities services for hedge funds, as well as credit-based lending to companies. Under the law, financial institutions with net worth of more than 3 trillion won can offer such service.
Currently only six are able to provide the services - Mirae Asset Daewo with 6.6 trillion won in equity capital, NH Investment & Securities with 4.6 trillion won, KB Securities with 4.2 trillion won, Samsung Securities with 4.1 trillion won, Korea Investment & Securities with 4.1 trillion won, and Shinhan Investment with 4 trillion won.
Meritz Securities has been expanding in order to meet the capital requirement, purchasing a 100 percent stake in its sister Meritz Capital Co. earlier this year and I’m Investment & Securities in June 2015.
By Moon Il-ho
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