South Korea’s Woori Bank has sold off a 2.7 percent stake in Woori Financial Group to foreign institutional investors in a block trade before the market opened Friday.

Woori Bank offered 18,346,782 shares in Woori Financial Group, estimated at 268.8 billion won ($237.8 million) from Thursday’s closing of 14,650 won. Woori Bank said it drew almost $750 million booking from investors from all over the world, more than tripling the offering.

Foreign ownership in Woori Financial Group was upped to 30.2 percent from 27.5 percent as the result of the acquisition.

The divested shares are what it obtained in return for handing over holdings in its subsidiaries during holding transition.

It added that the fresh capital would bump up BIS adequacy of Woori Bank and Woori Financial Group by 18 basis points and 10 basis points, respectively.

Market experts also expect the sale would lead to a further rise in the stock price of Woori Financial Group by reducing the overhang in the market.

Still, there is another concern over share dilution due to a possible overhang after the remaining process of transition. Woori Bank’s two subsidiaries – Woori Card and Woori Investment Bank – will go under the holding structure within this year, and Woori Bank will again obtain shares of the holding entity. It should be sold off in six months to minimize the dilution of the shares.

Woori Financial Group shares closed Friday down 4.1 percent at 14,050 won in Seoul.

By Kim Gang-rae and Lee Ha-yeon

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