The three heirs to South Korea’s largest family-run conglomerate Samsung Group stand to make astronomical gains from their shares in group affiliate Samsung SDS Co. to be listed later this week, according to industry sources on Wednesday, giving them the cash resources to inherit the business from their father whose health has recently deteriorated.

In early 1999, Samsung SDS, which offers IT services for Samsung Group companies, sold bonds with warrants to chairman Lee Kun-hee’s children at a price far cheaper than the market value.

Lee Jay-yong, the vice chairman of Samsung Electronics and the ailing chairman’s only son, spent about 10 billion won ($9.07 million) to acquire 11.25 percent of Samsung SDS shares, paying 1,180 won on average per share, according to Chaebul.com, which tracks the nation’s conglomerates. His sisters, Lee Boo-jin and Lee Seo-hyun, spent 3.4 billion won each to buy them at an average of 1,112 won per share.

Samsung SDS shares are traded at around 355,000 won in the over-the-counter market, putting the combined stock value of the three siblings at approximately 5.23 trillion won, it said, roughly 307 times their initial investment.

Market watchers say the shares, to be floated on Friday at 190,000 won, may well go up to 500,000 won from the first trading day.

The three siblings already have received 33.7 billion won in dividends from 2003-2013, surpassing what was spent to buy the stocks.

Samsung SDS stocks were nearly 135 times oversubscribed during the two-day preorder last week, as retail investors tried to grab a piece of what is expected to be the second-largest initial public offering in the country this year at an estimated 1.16 trillion won.

Cheil Industries, essentially Samsung Group‘s holding company, is scheduled to be listed in December.

The three siblings are the grandchildren of Lee Byung-chul, the founder of Samsung. The stock listings and across-the-board restructuring underway at the group are seen as transfer of management to the third generation of the family. Their father, chairman Lee, is recuperating after a heart attack in May, although his health condition is mostly kept secret.

The children’s stock acquisition in Samsung SDS, made through a number of different financial instruments including convertible bonds purchase, became a matter of prosecutorial investigation after a former member of the group’s legal team exposed a web of bribery, book cooking and slush funds at Samsung to hide tax evasion and other unethical business practices. (Yonhap)