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Seoul — Hyundai Heavy Industries shares closed 86% above the initial public offering (IPO) price at the time of their trading debut in South Korea on Friday.
One of the world’s largest shipbuilders has raised $ 935 million from an IPO, with much of the proceeds going to invest in new technologies.
According to Hyundai Heavy Industries, domestic and foreign institutional investors bid for a total of 1,633 trillion won ($ 962.3 billion) in shares earlier this month.
The IPO institutional investor book has been featured 1,836 times. This is the second largest IPO in South Korea after SKIET earlier this year.
“Since the outbreak of the COVID-19 pandemic, soaring freight rates for container ships have spread to ship orders and ship prices have risen,” said Kim Hyun, an analyst at Melitz Securities.
“If stronger green regulations and new fuel testing lead to increased demand for eco-friendly ships to replace older fleets, the modern age of manufacturing both ships and engines is better suited to be more competitive. increase.”
Hyundai Heavy will invest approximately 760 billion won ($ 647 million) in revenue in future technologies such as environmentally friendly vessels and digital vessel technology, smart shipyards and hydrogen infrastructure.
Hyundai Heavy Industries Group is still awaiting regulatory approval from South Korea, Japan and the European Union for its plans to acquire rival Daewoo Shipbuilding & Marine Co., Ltd. after the acquisition was announced in 2019.
($ 1 = 1,174.2200 won)
Joyce Lee and Jihoon Lee
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