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By Nam Kwang-sik
SEOUL, Sept. 17 (Yonhap) — Hyundai Heavy Industries Co. closed 86 percent higher from its initial public offering (IPO) price, backed by foreign and retail investors.
Hyundai Heavy closed at 111,500 won (US$947) after reaching an intraday high of 135,000 won, 86 percent higher from its IPO price of 60,000 won and up 0.45 percent from its opening price of 111,000 won. Its market capitalization stood at 9.9 trillion won.
In March 2019, Hyundai Heavy Industries Group signed a deal with the state-run Korea Development Bank (KDB), the main creditor of its rival Daewoo Shipbuilding & Marine Engineering Co., to buy a 55.72 percent stake in the shipbuilder, which had been mired in a severe cash shortage since 1999.
Under the deal, Hyundai Heavy Industry Group split Hyundai Heavy Industries into two entities — Korea Shipbuilding & Offshore Engineering (KSOE), a holding company that governs shipbuilding units under the group and handles the acquisition, and a reorganized and unlisted Hyundai Heavy Industries, which focuses on the construction of ships.
In sharp contrast with Hyundai Heavy Industries, KSOE tumbled 10.97 percent to 105,500 won, and Hyundai Heavy Industries Holdings Co. (HHIH), the group’s holding company, dropped 6.45 percent to 65,300 won.