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Tuesday, July 23, 2024

Investors bullish on Hyundai Motor as shares soar ahead of India IPO plan

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In Short:

Hyundai Motor Co’s shares hit a record high as investors believe listing its Indian unit in Mumbai will help boost its presence in the auto market. Hyundai’s shares rose by 3.9%, reaching a market cap of 58.3 trillion won. The IPO will involve selling 142 million shares, with a goal of raising $2.5-$3 billion at a valuation of up to $30 billion.

Hyundai Motor Co’s Shares Skyrocket to Record High!

Exciting news alert! Hyundai Motor Co’s shares have hit a record high as investors are buzzing with anticipation over the South Korean automaker’s plan to list its India unit in Mumbai. This strategic move is expected to boost the company’s presence in the world’s third biggest auto market.

Share Price Soars

Shares of **Hyundai Motor** surged as much as 6.3% on Monday to 285,000 won ($206.47), closing up 3.9% at a record high. This surge lifted the company’s market capitalization to a whopping 58.3 trillion won, while the benchmark KOSPI closed 0.5% lower.

India IPO on the Horizon

**Hyundai Motor’s** India unit recently sought regulatory approval for its listing in Mumbai. The South Korean parent company plans to sell up to 142 million shares, or 17.5% of the total 812 million shares in the IPO. Analysts believe this move will pave the way for Hyundai to strengthen its position in the Indian market, which is one of their top revenue-generating markets.

According to analyst Song Sun-jae with Hana Securities, “Investors are betting on Hyundai Motor’s growth in the Indian market, one of Hyundai Motor’s four biggest revenue-generating markets along with the US, South Korea and Western Europe.”

Accelerating Plans for India

With the IPO, Hyundai Motor aims to accelerate its plans for the Indian market, including venturing into the electric vehicle (EV) market ahead of competitors. The company plans to produce EVs in India by adjusting its existing production site, setting the stage for a powerful market entry.

Exciting Valuation Numbers

The draft prospectus did not disclose the pricing of the IPO or the company’s valuation. However, sources suggest that Hyundai is looking to raise around $2.5-$3 billion at a valuation of up to $30 billion. This ambitious target has certainly caught the attention of investors and industry experts alike.

In a novel approach, Hyundai will not issue new shares in the IPO. Instead, its South Korean parent will sell part of its stake in the wholly owned unit to retail and other investors through an “offer for sale” route.

Exciting times lie ahead for Hyundai Motor as it gears up to make a significant mark in the Indian auto market!

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