The initial public offering (IPO) of HD Hyundai Marine Solutions, which is considered the biggest stock in the public stock market in the first half of the year, is showing signs of success worthy of its name. As the public offering stock market has been led by small and medium-cap companies, there are expectations that the big catch fever will spread, starting with HD Hyundai Marine Solutions.
According to the financial investment industry on the 25th, HD Hyundai Marine Solutions, a ship after-sales service company, decided on the final public offering price of 83,400 won, the highest public offering price, based on the demand forecast results from the 16th to the 22nd.
Based on the public offering price, the public offering amount is 742.3 billion won and the expected market capitalization is 3.7071 trillion won. 2,021 companies, including large domestic pension funds and major overseas players, participated in the demand forecasting. The competition rate was calculated to be 201.13 to 1. The demand forecasting atmosphere was so heated that 93.5% of participating institutions wrote prices higher than the upper end of the public offering price.
As it was a success in the demand forecast, it is highly likely that the general subscription, which will be held from this day to the 26th, will also be a success.
As HD Hyundai Marine Solutions is a signal of the recovery of the IPO market this year, attention has been focused on whether it will be a success or not.
As expectations for the success of HD Hyundai Marine Solutions spread, there is speculation in the market that other large-scale companies will more actively pursue listing.
Unlike last year, when the listings of major public offering stocks were postponed or canceled, there is a high possibility that major companies such as K Bank, SK Eco Plant, LG CNS, and Curly will be listed.
K Bank plans to request a preliminary listing review from the Korea Exchange in May. K Bank, which passed the exchange review in February of last year but chose to withdraw its listing due to deteriorating market conditions, decided on the IPO agenda through its board of directors meeting in January.
Iljin Steel is also said to be planning to request a preliminary review for KOSPI listing next month with the goal of listing within the year. In addition, trillion-dollar companies such as Hyundai Oilbank, SSG.com, Kakao Mobility, CJ Olive Young, 11st, and Yanolja are expected to be listed on the stock market.
Securities analysts believe that the IPO market will grow even larger this year, considering the favorable economic cycle and corporate conditions.
Song Joo-yeon, a researcher at Daol Investment & Securities, said, “The fact that IPO plans that were postponed due to last year’s interest rate increase cycle and sluggish indexes throughout the year can be implemented within the year is also a reason to expect the IPO market to expand within the year.”
However, as the IPO market is overheated, there are also observations that the market atmosphere may turn around starting with HD Hyundai Marine Solutions.
Cho Dae-hyung, a researcher at DS Investment & Securities, said, “HD Hyundai Marine Solutions’ simple valuation based on 2023 performance is somewhat high at 30 times,” adding, “The IPO market was hot enough that all companies with demand forecasts in the first quarter exceeded the upper end of the public offering price band, but “There are many cases where the market atmosphere reversed before and after the IPO of companies with a market capitalization in the trillions of trillions, so it is necessary to watch the public offering process closely,” he said.
Tags: Signs success Hyundai Marine Solution big fish attracted trillion won .. large IPOs spread
