Kookmin brings innovative equity deal

Korea''s largest bank creates a new template for block trades.

Kookmin Bank raised W1.26 trillion $1.24 billion yesterday June 16 after disposing of almost all the Treasury shares it purchased from the government in December 2003. The deal represents the largest Korean equity deal since Korea Telecom's $2.2 billion offering in 2001 and may pave the way for a number more as a result of regulatory changes applied by the FSS Financial Supervisory Service.

After consultation with lead manager JPMorgan, the Korean regulator has modified some of its complex and contradictory regulations governing domestic equity deals. Primarily these concern rules about the discount level a deal can be priced at and who it can be allocated to.

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