Hyundai Motor Co. shares surged Monday after its Indian subsidiary filed for an initial public offering that could raise about $3 billion. Hyundai Motor shares sharply surged 6.34% to 285,000 won with about an hour and a half into trade on the South Korean exchange, extending gains to hit a new 52-week high.
The euphoria of the initial drama, however, somewhat fizzled out by 10:30 a.m. to 279,000 won, Yonhap news agency said.
Hyundai Motor Corp. had said in a regulatory filing earlier on Monday that its Indian unit had submitted IPO documents with relevant Indian regulatory authorities.
The company said the final decision on listing of the Indian unit would be subject to regulatory review in India and nothing further could be disclosed at this stage.
Hyundai Motor India has submitted its draft red herring prospectus with the Securities and Exchange Board of India for the IPO.
Accordingly, "The principal purposes of the IPO are to commence an Offer for Sale of up to 142,194,700 Equity Shares of Rs 10 face value each by the Promoter Selling Shareholder and leveraging the benefits of listing of the Equity Shares on the Stock Exchanges," the DRHP said.
Listing of the equity shares will further improve our market presence and brand image besides providing liquidity and a public market for the equity shares in India," Hyundai Motor India's DRHP said.
If everything works out and goes according to plans, this would be the largest IPO, in terms of offer size, in India, following state-owned Life Insurance Corporation of India $2.7 billion listing in 2022.
Hyundai Motor India has been ranked second as a passenger vehicle manufacturer in FY 2024 after Maruti Suzuki with respect to sales volumes.
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