Hyundai Oilbank Withdraws IPO... "Difficult to Receive Proper Recognition of Corporate Value"
[Asia Economy Reporter Oh Hyung-gil] Hyundai Oilbank is withdrawing its initial public offering (IPO).
Hyundai Oilbank announced on the 21st that it has decided to withdraw its IPO plan. The board of directors held a meeting on the 20th and, after comprehensively considering the recent stock market conditions and the stock price trends of peer companies, decided to withdraw the IPO.
Hyundai Oilbank held a board meeting in June last year and decided to pursue listing on the Korea Exchange. In December of the same year, it submitted an application for preliminary review to the Korea Exchange and received approval for the preliminary review in June this year.
However, due to the intensification of global inflation, interest rate hikes, and concerns over economic recession, the KOSPI index has fallen nearly 30% over the past year. Additionally, the public offering market has tightened sharply, leading companies such as Hyundai Engineering and SK Shieldus, which were also pursuing listings, to withdraw their IPOs, showing sluggish performance. Hyundai Oilbank considered these factors in its decision.
A Hyundai Oilbank official stated, "Despite excellent performance, it has become difficult to receive proper valuation in the current market environment, so we judged that it is no longer feasible to proceed with the IPO." He added, "Although we have decided to withdraw the IPO, we will continuously strive to invest in future businesses such as petrochemical materials, biofuels, and hydrogen projects, as well as improve our financial structure based on solid performance."
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Meanwhile, Hyundai Oilbank achieved record-high results with consolidated sales of KRW 20.6066 trillion and operating profit of KRW 1.1424 trillion in 2021. In the first quarter of this year, it recorded consolidated sales of KRW 7.2426 trillion and operating profit of KRW 704.5 billion.
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