HD Hyundai Marine Solution doubles in South Korea’s largest IPO since January 2022

Shares of maintenance and repair firm HD Hyundai Marine Solution spiked nearly 50% in their trading debut Wednesday, marking a strong start to South Korea’s largest IPO since January 2022.

Shares traded as high as 166,100 South Korean won ($121.59) apiece, representing a 99.1% surge from the IPO price of 83,400 won.

The ship-repair unit of South Korea’s largest shipping conglomerate HD Hyundai Group sold 8.9 million shares in the initial public offering. The IPO totaled 742.26 billion won, valuing the newly public unit around 3.71 trillion won at the offering price.

Half — or 4.45 million—of the IPO shares are newly issued.

The company’s IPO showed strong investor interest, with both the institutional and retail offering oversubscribed by over 200 times combined.

The Wall Street Journal, citing HD Hyundai officials, reported that the parent conglomerate, which held a 62% stake in its unit ahead of the IPO, will continue to be in control.

Meanwhile, KKR, the second-largest shareholder since 2021, plans to gradually reduce its stake, which currently stands at 38%.