Daehan Shipbuilding’s initial public offering (IPO) has been finalized at 50,000. The mid-sized company specializes in medium-sized ships construction, and has been seeking to list on the Korea Composite Stock Price Index (KOSPI).

On July 21, Daehan disclosed having completed its five-day book building with domestic and foreign institutional investors from July 11 to 17. The IPO was decided within the top end of proposed ranges.

The company had previously proposed an IPO range between 42,000 won and 50,000 won through lead underwriters KB Securities and NH Investment & Securities.

The demand forecast for Daehan was met with 2,106 domestic and foreign institutional investors combined, with a total bid for 1.51613 billion shares. Out of the 2,106 institutional investors, 2,104 submitted bids at or above 50,000, which led to the finalized price of 50,000.

Showing a 275.7-1 competitive ratio for lock up agreements, 57% of the participating investing institutions agreed to a minimum lock-up period of 15 days. Among those, 234 institutions committed to a three-month long lock-up period—a popular option.

Rises in the shipbuilding industry contributed to a strong demand during the book-building process. Though the extended slump almost forced Daehan out of business, the company has been revolutionized.

Daehan has been showing steady recovery from 2021, when ship prices rose and new shipbuilding orders brought in bigger orders. Last year, it hit over a trillion won in annueal revenue with a 14% operating profit margin.

IPO numbers are set to 50,000 won, but total offering prices are expected to be around 500 billion won. Market capitalizations are predicted at 1.9263 trillion won after listing.

The company intends to use amassed IPO funds to invest in sustainable shipping technologies, strengthen designs and finance marketing teams to secure global orders.

Retail investor subscriptions for Daehan will become available on July 22 and July 23, and its KOSPI listing is scheduled for Aug. 1.
Source: Chosun