Shares of Cheil Industries Inc., the de facto holding firm of South Korea's top conglomerate Samsung, rose by the daily permissible limit of 15 percent Friday on news that global index providers would add the company to their indices earlier than expected.
   
Cheil Industries closed at 129,500 won (US$117) on the second day of trading. On its market debut on Thursday, the company closed at 113,000 won, more than doubling its initial public offering price of 53,000 won.
   
The country's benchmark index, the KOSPI, jumped 1.71 percent.
   
The median target price for Cheil Industries offered by eight brokerage houses was 95,400 won, with some suggesting over 125,000 won.
   
According to industry sources, the FTSE and the MSCI will add Cheil Industries to their indices on Dec. 29 and Jan. 5, respectively.
   
"The planned addition to the indices would help boost foreign investors' buying bids for Cheil Industries," said Kang Song-chul, an analyst at Korea Investment & Securities. "Cheil Industries could continue to rise down the road on such hopes."
   
The company, formerly known as Samsung Everland whose trademark business was zoo and amusement park operations, stands at the apex of the group's cobweb-like cross-shareholding structure. It holds a 20 percent stake in key financial unit Samsung Life Insurance Co., which in turn is a major shareholder in the group's flagship affiliate Samsung Electronics Co.
  
Cheil Industries' business portfolio ranges from food services and a theme park to fashion and construction. Last year, Cheil Industries posted a net profit of 96.3 billion won on sales of 3.02 trillion won.
   
The IPO is the second of its type by Samsung this year after one of the group's IT units, Samsung SDS Co., made its market debut last month.
   
The conglomerate has been seeking to transform its business portfolio and go public with some of its affiliates since the group's owner was hospitalized in May after a heart attack, apparently to help the group's management succession.      
   
The group's owner, Lee Kun-hee, holds a 3.7 percent stake in Cheil Industries, and his only son and heir apparent, Jay-yong, has the largest stake of 25.1 percent. The elder Lee's two daughters each own 8.4 percent.
   
Meanwhile, the group's flagship unit, Samsung Electronics Co., spiked 4.9 percent, and its sister firm Samsung SDS rose 2.5 percent. (Yonhap)