SEOUL, Hyundai Heavy Industries Co., a top shipbuilder here, drew stronger than expected subscription from retail investors for its planned initial public offering (IPO), drawing a total of 56 trillion won (US$48.2 billion) deposit during the two-day subscription period.

The subscription deposits were the largest since July this year when Kakao Bank, the country's leading only-Internet bank, received 58.32 trillion won in subscription deposits from retail investors.

Hyundai Heavy priced its IPO at 60,000 won, and will raise 1.08 trillion won upon on debut on Sept. 16, which will put its market value at 5.33 trillion won.

In the first seven months of the year, Hyundai Heavy has won orders valued at $8.6 billion to build 59 ships, surpassing its $7.2 billion annual order target.

The seven-month order is the highest of the same period since 2014, the company said.

In March 2019, Hyundai Heavy Industries Group signed a deal with the state-run Korea Development Bank (KDB), the main creditor of its rival Daewoo Shipbuilding & Marine Engineering Co., to buy a 55.72 percent stake in the shipbuilder that had been mired in a severe cash shortage since 1999.

Under the deal, Hyundai Heavy Industry Group split Hyundai Heavy Industries into two entities -- Korea Shipbuilding & Offshore Engineering (KSOE), a holding company that governs shipbuilding units under the group and handles the acquisition, and a reorganized and unlisted Hyundai Heavy Industries that focuses on the construction of ships.

Source: Yonhap News Agency