Hyundai Motor India Subsidiary, Tokyo Metro, and More... IPO Blockbusters Debut This Week

This Week's Stock Market Debut of Hyundai Motor and Tokyo Metro
Entrepreneurial 'Animal Spirit' Brings Vitality to Capital Markets

As blockbuster IPOs such as Hyundai Motor's India subsidiary and Tokyo Metro are set to debut on the stock market this week, attention is focused on whether the Asia-Pacific capital markets can overcome years of stagnation and successfully rebound.

According to Bloomberg on the 20th (local time), about 20 companies in the Asia-Pacific region alone will go public this week. The funds expected to be raised amount to up to $8.3 billion (approximately 11 trillion KRW), marking the largest weekly transaction volume since April 2022.

[Image source=Reuters Yonhap News]

Bloomberg stated, "As companies and major shareholders aim to complete deals before the U.S. presidential election in November, Asian banks are experiencing their busiest IPO week in two years," adding, "Since this serves as a litmus test for the recovery of demand in the IPO market, stakeholders will closely watch the stock performance of these newly listed blockbusters."

The star among the companies debuting on the stock market this week is undoubtedly Hyundai Motor's India subsidiary. Having successfully closed its share allocation subscription last week, Hyundai Motor India is recognized with a corporate valuation of $19 billion (approximately 26 trillion KRW) and is scheduled to list on the Mumbai Stock Exchange on the 22nd. Hyundai Motor is expected to raise about $3.3 billion (4.5 trillion KRW) through this listing. If confirmed, this will be the largest IPO in the history of the Indian stock market. The previous record was $2.5 billion (approximately 3.4 trillion KRW) raised by the Life Insurance Corporation of India in 2022.

Tokyo Metro, joining the Tokyo Stock Exchange on the 23rd, is also a major attraction for investors. Priced at the top end of the offering price at 1,200 yen per share, Tokyo Metro is set to raise a total of 348.6 billion yen (approximately 3.18 trillion KRW) through this IPO. This is the largest IPO since SoftBank Group's 2.6 trillion yen IPO in 2018. Currently, the largest shareholders of Tokyo Metro, the Japanese government (53.4% stake) and the Tokyo Metropolitan Government (46.6% stake), plan to sell half of their shares through this listing.

Additionally, China’s bottled water company China Resources Beverage (CRB) and Hong Kong’s autonomous driving technology firm Horizon Robotics will enter the Hong Kong Stock Exchange this week, raising $649 million and $696 million respectively. Cash Zhang, head of Morgan Stanley Asia equities, commented, "It is highly likely that the Hong Kong and Chinese capital markets have entered the early stages of recovery," adding, "To sustain the recovery, larger and higher-quality companies are needed."

Experts view that the Asia-Pacific IPO market, which had rapidly cooled due to the pandemic and high interest rate environment, is beginning to regain momentum. Matthew Emsley, IPO partner at multinational law firm Herbert Smith Freehills, said, "The 'animal spirits' are returning to the Asian market," analyzing that "activities and urgency to leverage this positive momentum are spreading throughout the market." He explained that investors and entrepreneurs aiming to close deals before the uncertain November U.S. presidential election are driving transactions based more on animal instincts derived from experience than on rational judgment, thereby invigorating the market.