Few would have thought that a $200 million GDR for one of Korea's most highly regarded equity stories could have presented lead managers Goldman Sachs and Salomon Smith Barney with one of the tougher execution challenges of the year.
Yet the two banks were hit with a double whammy, as an outperforming stock provoked increasing investor price sensitivity throughout roadshows, while the order book could have easily unraveled after the Korean stock market suddenly posted its biggest drop of the year in the final hours ahead of pricing yesterday. The Kospi closed down 4.7% on Thursday as the market came to terms with a realisation that Hynix's creditor banks may have negotiated themselves a poor...
