Korea Power Said to Set IPO Price at Bottom of Range

Korea Power Engineering Co., a unit of the nation’s biggest utility, set the price for its initial public offering at the bottom of a marketed range, according to a person with knowledge of the matter.

Largest stockholder Korea Electric Power Corp. (015760) will sell 7.644 million shares for 21,600 won each, bringing the size of the sale to 165.1 billion won ($142 million), said the person, who declined to be named. The marketed range for the shares was between 21,600 won and 24,400 won.

The Yongin, South Korea-based power-plant designer said on Nov. 4 it will take subscriptions for the shares on Dec. 3 and 4. The sale, managed by Tong Yang Securities Inc. (003470), will reduce Korea Electric’s stake to 77.94 percent from 97.94 percent.

Korea Power Engineering posted 2008 net income of 27.5 billion won on sales of 347.3 billion won.

To contact the reporter on this story: Saeromi Shin in Seoul at sshin15@bloomberg.net

To contact the editor responsible for this story: Linus Chua in at lchua@bloomberg.net