Monday, February 6, 2023
spot_img
HomeFinance & EconomyHHI proves popular as retail investors get their chance

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

HHI proves popular as retail investors get their chance

The two-day public subscription period for Hyundai Heavy Industries’ (HHI) initial public offering (IPO) began Tuesday with the company attracting over 5.5 trillion won ($4.7 billion) in deposits on the first day.

Of recent IPOs, game developer Krafton attracted around 5 trillion won during its two-day public subscription period, while KakaoBank attracted over 58 trillion won. Analysts are expecting investors to more aggressively jump in on the second day.

While the deposited amount is not a good indication of the future performance of the company’s shares, some Korean investors use it as a rough measure of sentiment.

Each share is priced at 60,000 won. The price was set at the upper end of the price band offered by the company, which was between 52,000 won and 60,000 won.

The company is offering 18 million shares newly issued for the IPO. Of that, 25 percent have been allocated to retail investors.

The shipbuilder is planning to raise 1.08 trillion won with the IPO and use some 70 percent of raised funds on research and development of next-generation ships and environmentally-friendly shipbuilding technologies.

The shares were popular among institutional investors.

On Monday the shipbuilder announced in a release that its shares were oversubscribed 1,836 times during its two-day bookbuilding period last week, with 1,633 institutional investors at home and abroad taking part. The competition during the bookbuildling process is the second highest recorded, after the 1,883 times oversubscription record set by SK IE Technology.

Analysts are expecting the shipbuilder to show robust growth after listing, as the shipbuilding market is recovering led by demand to replace old and polluting ships with more eco-friendly models to abide by international guidelines on ship emissions.

“The company has sweeping dominance in market share when it comes to building high value-added ships like liquefied natural gas-powered ships,” wrote Choi Jin-myung, an analyst from NH Investment & Securities, in a report early this month. “Orders in the shipbuilding market are also expected to improve for the next five years.”

HHI will be listing on the Kospi on Sept. 17, according to the company’s regulatory filing on Monday.

This won’t be the first time the company has been listed on the local stock market. Until 2019, HHI was traded on the Kospi. In 2019, it changed its name to Korea Shipbuilding & Offshore Engineering (KSOE) and split into an operating company, which took the name HHI, and an intermediate holding company, KSOE.

Those decisions were part of the acquisition of Daewoo Shipbuilding & Marine Engineering. The acquisition still needs approval from overseas antitrust regulators to be completed.

Since then KSOE has been traded on the stock market, with HHI becoming a wholly-owned subsidiary of KSOE.

Last year, HHI posted a net loss of 431.4 billion won. In the first half of this year, its net loss was 345.5 billion won.

Source: Korean JoongAng Daily

Related Posts

Video

Finance & Economy
Shipping News
Ports

LNG boosts CPLP 2022 results

Capital Product Partners L.P. released its financial results for the fourth quarter ended December 31, 2022. Highlights  Three-month periods ended December 31, 20222021Increase/(Decrease)Revenues$79.9 million$63.6 million26%Expenses$42.1 million$35.7...

Keppel Corp posts 9% drop in full-year profit

Singapore’s Keppel Corp said on Thursday its net profit for the year fell 9%, partly hurt by weak performance from its urban development business...

Stolt-Nielsen sees Q4 profits rise on strong markets

Stolt-Nielsen Limited reported unaudited results for the fourth quarter and full year 2022. The Company reported a fourth-quarter net profit of $95.3 million, with revenue...

Euronav delivers better-than-expected Q4 revenue

Euronav NV reported its non-audited financial results for the fourth quarter ended 31 December 2022. Hugo De Stoop, CEO of Euronav said: “Constrained vessel supply...

Wartsila: A challenging year with strong annual growth

HIGHLIGHTS FROM OCTOBER–DECEMBER 2022 Order intake decreased by 24% to EUR 1,638 million (2,150)Service order intake increased by 6% to EUR 791 million (747)Net sales...

Baltic index hits over 2-year trough on waning demand for larger vessels

The Baltic Exchange’s dry bulk sea freight index dropped to its lowest level in...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury...

Baltic index falls to over 2-year low as larger vessel rates slide

The Baltic Exchange’s dry bulk sea freight index fell to its lowest since June...

Baltic index logs worst month in 3 years

The Baltic Exchange’s main sea freight index registered its biggest monthly percentage fall in...

Baltic index snaps 9-day losing streak as panamax, supramax rates rise

The Baltic Exchange’s main sea freight index snapped its nine-session losing streak on Tuesday,...

DP World wins bid for development of a mega-container terminal at India’s Deendayal Port

DP World has won a major concession to develop, operate and maintain the mega-container terminal at Deendayal port in Gujarat, on the western coast...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury cruising will be one of the main highlights of the...

Port of Los Angeles proposes cruise terminal project

The Port of Los Angeles is inviting comments on a draft Request for Proposals (RFP) for the future development of a new Outer Harbor...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...