Employees at HD Hyundai Marine Solution Co. during the company’s listing ceremony on the Korea Exchange in Seoul, South Korea on Wednesday, May 8, 2024. Shares of ship repair company HD Hyundai Marine jumped 45% in southern Korea. Trading in Korea debuted following a 742.3 billion won ($547 million) initial public offering, which was priced at its highest and attracted strong demand.
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Shares of maintenance and repair company HD Hyundai Marine Solution nearly doubled in debut trading on Wednesday, making a strong start to South Korea’s biggest IPO since January 2022.
The shares were trading at 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 its initial public offering. The total value of the IPO was 742.26 billion won, with the value of the new public unit being approximately 3.71 trillion won at the offering price.
Half – or 4.45 million – of the IPO shares are newly issued.
The company’s IPO saw strong investor interest, with both institutional and retail offerings being oversubscribed by more than 200 times combined.
Wall Street MagazineHD Hyundai said the parent conglomerate, which held a 62% stake in its unit before the IPO, will continue to control the company, citing HD Hyundai officials.
Meanwhile, KKR, the second-largest shareholder as of 2021, plans to gradually reduce its stake, which currently stands at 38%.