Finance
HD Hyundai Marine Solution shares doubled in IPO
Employees of HD Hyundai Marine Solution Co., during the company’s listing ceremony on 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 the South’s trading debut Korea after a 742.3 billion won ($547 million) initial public offering that was priced at the top of the price range and met strong demand.
Bloomberg | Bloomberg | Getty Images
Shares of maintenance and repair company HD Hyundai Marine Solution nearly doubled in their trading debut Wednesday, marking a strong start to South Korea’s largest initial public offering since January 2022.
The shares traded for as much as 166,100 South Korean won ($121.59) each, representing a 99.1% increase from the IPO price of 83,400 won.
The ship repair unit of South Korea’s largest shipping conglomerate HD Hyundai Group sold 8.9 million shares in its initial public offering. The IPO totaled 742.26 billion won, with the new public unit valued at around 3.71 trillion won at the offering price.
Half – or 4.45 million – of the IPO shares were newly issued.
The company’s IPO showed strong investor interest, with both the institutional and private offerings combined being more than 200 times oversubscribed.
The Wall Street Journalciting HD Hyundai officials, reported that the parent conglomerate, which held a 62% stake in its unit prior to the IPO, will continue to retain control.
Meanwhile, KKR, the second largest shareholder as of 2021, plans to gradually reduce its stake, which currently stands at 38%.
