In the News reporter Kim Yong-unㅣ”I am confident that Hyundai Heavy Industries will secure overwhelming competitiveness by using it as a new turning point for future growth.”
Hyundai Heavy Industries announced on the 6th that it has set the IPO price at 60,000 won, which is the highest expected price, based on the demand forecast conducted for domestic and foreign institutional investors on the 2nd and 3rd.
CEO Han Young-seok said, “I would like to express my gratitude to institutional investors who have highly evaluated both the current capabilities of Hyundai Heavy Industries and its future growth potential.” I am confident that we will secure an overwhelming competitive edge.”
Hyundai Heavy Industries issued a total of 18 million new shares ahead of its listing. Of this, 9.9 million shares, or 55%, are allocated to institutional investors.
According to Hyundai Heavy Industries, a total of 1,633 domestic and overseas institutional investors participated in this demand forecast. The competition ratio was 1836 to 1. This is the second highest record in the securities market. In addition, the number of applications for mandatory holding commitments by institutional investors, who took the shortest 15 days to 6 months, also reached 53.1% of the total number of applications.
At a company briefing held on the 2nd, Hyundai Heavy Industries announced its vision of ‘a first mover for eco-friendly ships, achieving a super-gap through preemptive investment’. It said that it will invest in the development of ships and eco-friendly technologies.
The reason Hyundai Shipbuilding’s IPO price was high is analyzed to be thanks to the continuous rise of the shipbuilding industry. According to Clarkson Research, a shipbuilding and shipping market analysis company, the newbuilding price index stood at 145.77 as of the end of August, exceeding 140 for the first time since 2010.
In addition, the trend of shifting the core competitiveness of the shipbuilding industry from cost-centered to technology-centered, as orders for eco-friendly low-carbon ships increased due to marine environmental pollution regulations, provided a favorable IPO environment for HHI. This is because Hyundai Heavy Industries ranks first in the world for gas-powered ships, which are high value-added ships.
As of the end of July, HHI’s provisional order record exceeded $10 billion, exceeding the annual target, and it is highly likely that earnings improvement will continue in the future.
Hyundai Heavy Industries plans to conduct public offering stock subscriptions for general investors for two days on the 7th and 8th. We allocate 4.5 million shares, which is 25% of the total public offering stock. Subscriptions can be made through Mirae Asset Securities, Korea Investment & Securities Co., Ltd., which are the lead organizers, Hana Financial Investment and KB Securities, which are co-hosts, and Samsung Securities, Daeshin Securities, DB Financial Investment, and Shinyoung Securities, which are underwriters.