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Hyundai Heavy makes strong market debut

All News 10:07 September 17, 2021

By Nam Kwang-sik

SEOUL, Sept. 17 (Yonhap) -- Hyundai Heavy Industries Co. made a strong market debut Friday, far higher than its initial public offering (IPO) price on the back of institutional buying.

As of 9:35 a.m., shares of South Korea's top shipbuilder were trading at 125,000 won (US$106), up 12.6 percent from its opening price of 111,000 won.

Hyundai Heavy priced its initial public offering at 60,000 won, the upper end of its proposed IPO price range.

The shipbuilder got off to a weak start, down more than 10 percent from its opening price.

A sign announcing Hyundai Heavy Industries' share sale for retail investors puts up at the first floor of headquarters building of Korea Investment Securities Co. on Sept. 8, 2021, in this photo provided the local stock brokerage firm. (PHOTO NOT FOR SALE) (Yonhap)

In March 2019, Hyundai Heavy Industries Group signed a deal with the state-run Korea Development Bank (KDB), the main creditor of its rival Daewoo Shipbuilding & Marine Engineering Co., to buy a 55.72 percent stake in the shipbuilder that had been mired in a severe cash shortage since 1999.

Under the deal, Hyundai Heavy Industry Group split Hyundai Heavy Industries into two entities -- Korea Shipbuilding & Offshore Engineering (KSOE), a holding company that governs shipbuilding units under the group and handles the acquisition, and a reorganized and unlisted Hyundai Heavy Industries that focuses on the construction of ships.

ksnam@yna.co.kr
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