HD Hyundai Marine Solution soars on first day of public trading

HD Hyundai Marine Solution, a ship maintenance unit affiliated with Korean shipbuilding giant HD Hyundai, made its stock debut Wednesday, with the stock price soaring on the first day of trading.

Listed on Kospi, the nation’s main bourse, its stock opened at 119,900 won ($88), a 48.8 percent surge from the initial public offering price of 84,300 won. It hit a high of 166,100 won before closing at 163,900 won.

During its book-building period earlier in April, the company managed to amass about 25 trillion won in deposits -- the largest IPO this year. The subscription, aimed at retail investors, was over-subscribed by nearly 255 times.

HD Hyundai Marine Solution was launched as a separate entity in 2016 to take over the ship maintenance business from shipbuilder HD Hyundai Heavy Industries. It provides comprehensive ship solutions, including ship converting for environmental friendliness, ship digital control and platforms, and bunkering services.

The company intends to utilize the IPO proceeds to position the company as a leader in the global ship retrofitting market, as well as to expedite its transition into a digital solution platform company.

This strategic initiative encompasses expanding domestic and overseas logistics centers, acquiring other ship management companies, enhancing cloud management systems, and establishing repair shipyard networks, the company said.

"Standing at the starting line for a new leap, I feel a heavy sense of responsibility," said Lee Ki-dong, CEO of HD Hyundai Marine Solution, during the listing ceremony earlier in the day.

"We plan to grow into a company that leads the endless possibilities of the sea, which HD Hyundai aspires to."

The ceremony took place at the headquarters of the Korea Exchange in Seoul on Wednesday, with HD Hyundai Vice Chairman and CEO Chung Ki-sun, Korea Exchange CEO Jeong Eun-bo and other officials in attendance.

In the meantime, Chung has acquired a total of 67,148 shares over the past week in an apparent move to show his confidence in the company’s growth and more responsible management. Following the acquisition, his shares in the company increased to 5.35 percent.