The initial public offering for Samsung SDS Co., an IT service unit of South Korea’s top conglomerate Samsung Group, was 134.19 times oversubscribed by retail investors before it closed its order book Thursday.

More than 15.5 trillion won ($14.3 billion) in subscription deposits were accepted for shares in the IT solutions firm, according to Korea Investment Securities Co., one of Samsung SDS’s book runners. About 20 percent of the shares to be sold on the country’s main bourse had been available for pre-orders since Wednesday.

The Korea Exchange (KRX), the country’s bourse operator, approved the IT solution company’s IPO, with the stock sale slated to kick off Nov. 14. With an offering price set at 190,000 won, the IPO is anticipated to be the second-largest in the country this year at an estimated total of 1.16 trillion won.

Shares of the IT services firm are traded at nearly double the IPO price on the over-the-counter market, making it profitable for investors looking to pocket large returns when the deposit interest is low and the stock market performance is mediocre.

For Samsung, the IPO is expected to generate cash to be used to fund the ownership transition from the effective head Lee Kun-hee to his three children.

The country’s top conglomerate is said to be revamping its structural organization after Lee’s sudden hospitalization from a heart attack. The 72-year-old business tycoon’s vacancy was followed by a set of mergers and IPOs among Samsung affiliates, initiating a speedy transfer of management to his children.

As part of the restructuring efforts, Cheil Industries Inc., Samsung’s textile and chemical materials unit, also sought out approval for an IPO late last month for a listing scheduled for Dec. 18. Cheil’s IPO is estimated at 1.5 trillion won, which will make it the largest in the country in more than four years.

With the cash raised from these IPOs, the heirs could purchase more stakes in Samsung affiliates, as well as pay taxes and other costs needed to tighten their grip on the family-run business.

Lee Jay-yong, the conglomerate’s heir-apparent, currently holds an 11.25-percent stake in Cheil Industries, the de-facto holding firm of Samsung Group through a complex web of cross-shareholders.

His two sisters, Lee Boo-jin and Lee Seo-hyun, each own a 3.9 percent stake, while Lee Kun-hee holds 0.01 percent.

While the popularity of the to-be-listed Samsung stocks is a positive sign for the conglomerate and its owners, some have voiced concerns that the superfluous orders are only driving up prices for the benefit of the rich, whereas retail investors who lack the capital to land a successful bid are left with nothing. (Yonhap)