Home Business Hyundai Heavy Industries became a major shipbuilder on the first day of listing on the KOSPI, but foreigners sold it Why?

Hyundai Heavy Industries became a major shipbuilder on the first day of listing on the KOSPI, but foreigners sold it Why?

by news dir

[푸드경제 유인근 기자]On the first day of listing on the KOSPI, he immediately became a major stock in the shipbuilding industry. Hyundai Heavy Industries, the world’s No. 1 shipbuilder, was like that. The market closed at twice the IPO price. However, while foreigners threw it out from the first day of listing, individuals and institutions took the opposite action.

According to the Korea Exchange on the 17th, Hyundai Heavy Industries finished the transaction at 111,500 won, up 500 won (0.45%) from the initial price. The starting price was set at 111,000 won, 85% higher than the public offering price (60,000 won). Compared to the IPO price, the closing price rose by 85.8%.

This is higher than the target price predicted by the securities industry. In the report, Meritz Securities presented a target price of 110,000 won for Hyundai Heavy Industries and 90,000 won for Shinhan Investment Corp., respectively.

Based on market capitalization, it has risen to the top of the new shipbuilding stock market. Based on the closing price, the market cap stood at 9.89 trillion won, ranking 42nd in the KOSPI (excluding preferred stocks), surpassing its parent company, Korea Shipbuilding & Marine Engineering (7,466.6 billion won, 51st). In order to be included in the KOSPI 200 index, the average market capitalization ranking for 15 days after listing must be maintained within the top 50. The price-to-earnings ratio (PBR) also stood at 1.57x, a higher premium than Korea Shipbuilding & Marine Engineering (0.71) and Daewoo Shipbuilding & Marine Engineering (1.18).

Hyundai Heavy Industries showed high volatility on the first day of listing. The stock, which had been bullish in the early trading session, plunged more than 10%, dropping to 91,000 won at one point during the trading session. However, it immediately turned upward and rose to 135,000 won at once. As the stock price fluctuated rapidly within a short time, two dynamic VIs and four static VIs were triggered on this day alone.

VI is a price stabilization device that warns investors about stocks with large stock price fluctuations. A short cooling period is given to single-price trading for 2 to 10 minutes to draw the attention of investors. Dynamic VI is activated when it deviates by 2~3% or more based on the execution price, and static VI is activated when it changes by 10% or more. In the case of Hyundai Heavy Industries, VI was triggered due to a stock price surge in the morning, and at 1:29 pm, it fell by more than 10%, triggering a static VI.

The rise in stock prices was led by individuals and institutions, and it was foreign selling that limited the rise. Foreigners sold Hyundai Heavy Industries for 186.5 billion won. Individuals and institutions net bought 42.2 billion won and 147.5 billion won, respectively.

As expected, it seems that the amount of foreign institutional investors who have not yet made a mandatory holding commitment has been pouring in. At the time of demand forecasting, out of the amount allocated to overseas institutional investors, only about 1.2% (41,500 shares) of the total amount of mandatory holding was unconfirmed, and the remaining 98.8%, or 3,444,800 shares, were unconfirmed. This amounted to about 40% of the number of available shares on the day of listing.

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