Employees of HD Hyundai Marine Solution Co., during the company’s listing ceremony at the Korea Exchange in Seoul, South Korea, on Wednesday, May 8, 2024. HD Hyundai Marine, a ship repair company, rose as much as 45% in South Korea’s trading debut after a IPO valued at 742.3 billion won (US$547 million), priced at the high end and met with strong demand.
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Shares of maintenance and repair company HD Hyundai Marine Solution rose nearly 50% in their trading debut on Wednesday, marking a strong start for South Korea’s largest initial public offering since January 2022.
The shares traded for as much as 166,100 South Korean won ($121.59) apiece, up 99.1% from the IPO price of 83,400 won.
The ship repair division of South Korea’s largest shipping conglomerate HD Hyundai Group sold 8.9 million shares in the IPO. The IPO totaled 742.26 billion won, making the newly listed entity worth around 3.71 trillion won at the offering price.
Half – or 4.45 million – of the IPO shares are newly issued.
The company’s IPO attracted strong investor interest, with both the institutional and retail offerings combined being oversubscribed more than 200 times.
The Wall Street Journal, citing HD Hyundai officials, reported that the parent company, which held a 62% stake in its unit before the IPO, will remain in control.
Meanwhile, KKR, the second-largest shareholder since 2021, plans to gradually reduce its stake, which currently stands at 38%.
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2024-05-08 04:17:07
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