Institutional Interest Rises for Hyundai Motor India IPO... Subscription Rate Exceeds 200%

Offering Price Set at Upper Limit... Corporate Value Estimated at 26 Trillion KRW
Hyundai Motor Expected to Raise 4.5 Trillion KRW

Institutional investors are showing strong interest in Hyundai Motor Company's India subsidiary initial public offering (IPO). The stock allocation subscription rate exceeded 200%, resulting in a complete sell-out of the shares.

According to foreign media including Bloomberg on the 18th, the stock allocation subscription for Hyundai Motor's India subsidiary IPO, conducted from the 15th to the 17th, ended amid high demand.

Interest from individual investors waned, with the subscription rate remaining in the 40% range until the second day of the three-day period. However, institutional investors flooded in afterward, driving popularity to soar. Foreign and local asset management firms placed bids exceeding six times the allocated shares. Meanwhile, the subscription rate among individual investors fell below 50%. Asta Jain, an analyst at Hem Securities, explained, "The stock price was set quite high, so individual investors were less likely to participate, aiming for quick profit realization."

As a result, with the public offering price set at the upper end of the expected range, Hyundai Motor's India subsidiary was valued at approximately $19 billion (26 trillion KRW). Hyundai Motor raised $3.3 billion (about 4.5 trillion KRW) through this IPO. Trading of the shares will begin on the 22nd.