The maintenance and repair firm, HD Hyundai Marine Solution, had a successful trading debut in South Korea, with shares spiking nearly 50%. The IPO was the largest in the country since January 2022, and shares traded as high as 166,100 South Korean won, 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 the IPO, totaling 742.26 billion won and valuing the newly public unit at around 3.71 trillion won.
Half of the IPO shares, or 4.45 million, were newly issued, indicating strong investor interest in the company. Both the institutional and retail offering were oversubscribed by over 200 times combined. The parent conglomerate held a 62% stake in HD Hyundai Marine Solution before the IPO and will continue to be in control following the successful debut. The second-largest shareholder, KKR, plans to gradually reduce its stake, which currently stands at 38%.
The Wall Street Journal reported that HD Hyundai officials stated that the parent conglomerate would maintain control of the firm despite the IPO. KKR, the second-largest shareholder since 2021, intends to gradually reduce its stake in HD Hyundai Marine Solution. The strong investor interest in the IPO, with both institutional and retail offerings oversubscribed by over 200 times combined, demonstrates confidence in the company’s future prospects.
The successful trading debut of HD Hyundai Marine Solution marks a strong start for the company following its IPO. Shares surged nearly 50% in trading, reaching as high as 166,100 South Korean won. The IPO was the largest in South Korea since January 2022, with the ship-repair unit of HD Hyundai Group selling 8.9 million shares and valuing the newly public unit at around 3.71 trillion won. The firm’s strong performance in the market reflects investor confidence in its future growth and potential.
HD Hyundai Marine Solution’s IPO showed strong investor interest, with both the institutional and retail offering oversubscribed by over 200 times combined. The parent conglomerate, HD Hyundai Group, will maintain control of the firm despite the IPO, with a 62% stake. KKR, the second-largest shareholder, plans to gradually reduce its stake in the company. The successful debut of HD Hyundai Marine Solution in the stock market sets a positive tone for its future growth and performance in the industry.
