Hyundai Oilbank cancels IPO, smaller players stick to their H2 IPO schemes

[Source: Hyundai Oilbank]

Hyundai Oilbank refiner is the latest to pull out of South Korea’s IPO pipeline, but ride-hailing service Socar and other platform IPO aspirants are sticking to their plan.

Hyundai Oilbank announced on Thursday that its board of directors has decided to put the IPO program on hold. The refiner applied for preliminary IPO review in December 2021 in its third attempt at IPO. It received the green light from the exchange operator last month.

The withdrawal comes despite the fact that the company has developed well.

The company generated 704.5 billion won ($538.4 million) in operating income in the first quarter, over 7.2 trillion won, after reporting record full-year 2021 revenue — 1.1 trillion won in operating income with sales of 20.6 trillion won on a consolidated basis.

The company has nevertheless concluded that it cannot be adequately valued under the current market conditions, a Hyundai Oilbank representative said.

Kospi, the country’s main stock exchange, has tumbled nearly 30 percent this year as rapid inflation and interest rate hikes dampened investor sentiment and IPO activity splashed cold water.

Earlier, Hyundai Engineering and SK Shielus, two of this year’s most anticipated newcomers, canceled their IPO plans.

[Source: Socar]

Power plant maintenance service provider Soosan Industries and ride-hailing app operator Socar are on schedule. Soosan Industries is holding a public subscription this week for next month’s IPO. Socar is expected to hold a bookbuilding session in August.

Kurly, operator of Korea’s pioneering online grocery store Market Kurly, is preparing to join Kospi by the end of this year.

Online lender K Bank is preparing to debut at Kospi within the year.

Women’s activewear brand Andar is set to join Kosdaq as it begins preparations for its IPO. Echomarketing, Andar’s parent company, announced Thursday that it has appointed Mirae Asset Securities as bookrunner for the IPO. It is set to apply for a preliminary review of the IPO shortly.

Battery equipment module maker HYTC and a number of companies have already passed preliminary testing to go public on the Kosdaq this year.

of pulse

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]