Korea’s IPO market heats up with HD Hyundai Marine, K Bank
Jeong-Cheol Bae
Mar 25, 2024 (Gmt+09:00)
Ship under HD Hyundai Marine Solution's maintenance service (Courtesy of HD Hyundai) South Korea’s initial public offering market is heating up as HD Hyundai Marine Solution Co., which aims to raise 742.6 billion won ($553.4 million) via an IPO, has started its listing process. K Bank, the digital banking unit of telecom giant KT Corp., is also preparing for a public market debut.
HD Hyundai Marine, shipbuilding giant HD Hyundai Heavy Industries Co.’s maintenance service unit, said on Monday it will hold its bookbuilding in April for a listing on the main Kospi.
The company aims for 3.71 trillion won in market cap. It posted 1.15 trillion won in revenue and 201.5 billion won in operating profit last year.
HD Hyundai Marine has set the price band between 73,300 won and 83,400 won. It will sell 4.5 million old shares and issue the same amount of new shares.
The company will receive subscriptions from retail investors April 25-26.
HD Hyundai Marine’s listing procedure is garnering market attention as the IPO market was chilly for large companies last year.
The main Kospi had only three newly listed firms last year – Doosan Robotics Inc., EcoPro Materials Co. and DS Dansuk Co. Seoul Guarantee Insurance Company and SK Encar dropped their listing plans.
Banking industry sources say that the success of HD Hyundai Marine’s IPO depends on whether KKR & Co. would sell its holdings in the ship maintenance firm. The US private equity giant is the second-largest shareholder of HD Hyundai Marine with a 38% stake, following HD Hyundai which owns 62%.
K Bank, which withdrew its IPO procedures amid the gloomy market in 2022, will apply for a preliminary review of its listing in May. The fintech firm aims for 5 trillion-6 trillion won of market cap.
LS E-link, an LS Group unit and electric vehicle charging station operator, plans to apply for a preliminary review of the IPO in July. The company aims for 1 trillion won in market cap.
LS Group, an electrics components-to-energy conglomerate, is set to list its subsidiaries such as cable maker Superior Essex and metal producer LS MnM within four years.
Viva Republica Inc., the operator of fintech platform Toss, has recently selected a lead manager for the IPO. It plans to go public next year.
Write to Jeong-Cheol Bae at bjc@hankyung.com Jihyun Kim edited this article.