[This Week's IPO] Demand Forecast and Subscription Schedule for the First Week of September

[Asia Economy Reporter Jang Hyowon] In the first week of this month (September), Hyundai Heavy Industries will conduct a demand forecast targeting institutional investors. SK REITs, ABION, and YM Tech are preparing for general subscription.

◆Hyundai Heavy Industries= Hyundai Heavy Industries is a company established through a physical division when the existing Hyundai Heavy Industries changed its name to Korea Shipbuilding & Offshore Engineering in May 2019.

A total of 18 million shares will be offered as new shares. Among the general offering, 9.9 million to a maximum of 13.5 million shares will be allocated to institutional investors, and 4.5 million to 5.4 million shares will be allocated to general investors. The employee stock ownership association has been allocated 3.6 million shares.

The expected price band is 52,000 to 60,000 KRW per share, and the total offering amount is expected to reach between 936 billion KRW and a maximum of 1.08 trillion KRW. The demand forecast will be conducted on the 2nd and 3rd, followed by general subscription on the 7th and 8th.

Hyundai Heavy Industries plans to use the funds raised this time to develop eco-friendly ships such as Grip Ship and unmanned autonomous ships, and to purchase steel and equipment. Additionally, 47 billion KRW will be used to repay borrowings.

◆SK REITs= SK REITs recorded a record-high competition rate of 452 to 1 in a large-scale public REIT offering exceeding 100 billion KRW, with a total demand of 73.5 trillion KRW during the demand forecast for a total offering of 232.6 billion KRW.

In July, SK REITs completed the acquisition of the SK Seorin Building located in Seorin-dong, Jongno-gu, Seoul, and incorporated 100% of the shares of Clean Energy Trust Management Real Estate Investment Company (Clean Energy REITs). SK’s major affiliates are responsible for leasing all assets held by the REITs and pay rent to SK REITs, which is used as a resource to pay dividends to shareholders every quarter.

General investor subscription will be held for three days from August 30 to September 1. The subscription volume for general investors is about 13.95 million shares, which is 30% of the total offering volume. The lead underwriters are Samsung Securities and Korea Investment & Securities, with Hana Financial Investment as the underwriter. SK Securities participates as a joint underwriter.

◆ABION= ABION, a precision oncology drug development company, has set the public offering price at the top of the expected price range (14,500 to 17,000 KRW) at 17,000 KRW. According to the demand forecast for institutional investors conducted on the 24th and 25th, 385 domestic and foreign institutions participated in the subscription of 1.71 million shares, which is 75% of the total offering volume. The total number of shares applied for was 238.306 million, and the final competition rate was 139.36 to 1.

ABION’s general investor subscription will be held for two days from August 30 to 31, targeting 570,000 shares, which is 25.0% of the total offering volume. The company is scheduled to be listed on the 8th of next month. The listing underwriters are Mirae Asset Securities and Hanwha Investment & Securities, with Eugene Investment & Securities participating as an underwriter.

◆YM Tech= YM Tech, a company specializing in EV relay manufacturing, conducted a demand forecast on the 25th and 26th. YM Tech is offering 600,000 shares. The expected price band is 21,000 to 25,000 KRW, with a total expected offering amount of 12.6 billion to 15 billion KRW. General subscription will be held from August 31 to September 1, and the company plans to be listed on the KOSDAQ market in September. KB Securities is the lead underwriter.

After listing, YM Tech plans to accelerate its entry into the DC 800V-class electric passenger car EV relay market. The EV relay market for electric passenger cars is an oligopoly dominated by a few companies. YM Tech has completed the development of EV relays for all types of electric vehicles and hydrogen fuel cell vehicles to secure a leading position in the DC 800V-class electric passenger car EV relay market.

This content was produced with the assistance of AI translation services.