Employees of HD Hyundai Marine Solution Co. attend the company’s listing ceremony at the Korea Exchange on Wednesday, May 8, 2024, in Seoul, South Korea. It debuted after an initial public offering (IPO) of 742.3 billion won ($547 million), priced at the top of the range and meeting strong demand.
Bloomberg | Bloomberg | Getty Images
Shares of maintenance and repair company HD Hyundai Marine Solution soared nearly 50% in their first trade on Wednesday, marking a strong start to South Korea’s biggest IPO since January 2022.
The trading price per share was as high as 166,100 won ($121.59), a 99.1% surge from the IPO price of 83,400 won.
The ship repair unit of HD Hyundai Group, South Korea’s largest shipping group, sold 8.9 million shares in its initial public offering. The total amount of this IPO is 742.26 billion won. Based on the issue price, the valuation of the newly listed units is approximately 3.71 trillion won.
Half, or 4.45 million, of the IPO shares were newly issued.
The company’s IPO showed strong investor interest, with institutional and retail offerings being oversubscribed by a combined over 200 times.
wall street journalHD Hyundai officials were quoted as saying that the parent company, which held a 62% stake in its subsidiary before the IPO, will continue to maintain control.
At the same time, KKR, the second largest shareholder since 2021, plans to gradually reduce its stake, with its current shareholding ratio at 38%.
About The Author
