[Market Focus] Hanwha Ocean Plunges Over 10% on News of KDB Stake Sale

Hanwha Ocean plunged by more than 10% in early trading on April 29. The news of Korea Development Bank's stock sale appears to be dragging down the share price.

As of 9:22 a.m. on this day, Hanwha Ocean shares were trading at 79,600 won, down 10.86% from the previous trading day. The stock opened at 82,200 won but quickly fell below the 80,000 won mark due to heavy selling pressure. This is in stark contrast to the previous day, when the stock rose to 95,300 won, hitting a new 52-week high.

Investor sentiment appears to have worsened following news that Korea Development Bank will sell part of its Hanwha Ocean stake. According to the financial industry, Korea Development Bank began book-building the previous day to sell its Hanwha Ocean shares through a block deal (after-hours bulk trading). Korea Development Bank currently holds a 19.5% stake in Hanwha Ocean, equivalent to 59,738,211 shares.

Industry sources estimate that Korea Development Bank will sell around 13 million shares. The exact number will be determined after the book-building process is completed.

Byun Yongjin, a researcher at iM Securities, said, "From a stock price perspective, the 19.5% stake overhang (potential selling pressure) will inevitably weigh on the share price for the time being," and downgraded his investment rating on Hanwha Ocean from 'Buy' to 'Hold.'