Hyundai Rotem Shares Show Strength on First Day of IPO

SEOUL, KOREA- The share price of Hyundai Rotem, a Hyundai Motor Group company manufacturing rolling stock, defense products, and plant equipment, showed strength on the first day of its listing. At 9:02 am on October 30, the shares of Hyundai Rotem were trade at 33,900 won, 0.59 percent higher than the initial public offering price of 33,700 won. The IPO price of 33,700 won was 46.52 percent higher than the subscription price of 23,000 won.

The company is an exclusive supplier of railroad rolling stock and defense items such as battle tanks and armored vehicles. The company's first-half sales revenues in railroad and defense divisions were 686 billion and 194 billion won, respectively. Its operating profit ratio for the same six months was 6.3 percent.

Jeon Yong-beom, analyst with IM Investment & Securities, said, "Hyundai Rotem's business portfolio is well balanced with railroad rolling stock, defense, and plant equipment. Its future growth will lie in railroad and defense." "Based on already-won projects and new businesses in railroad and defense, Hyundai Rotem's sales revenue for the year is estimated to be about 3.2 trillion won, followed by 4.0 and 5.0 trillion won in 2014 and 2015," he added.

Korea IT Times (info@koreaittimes.com) 다른기사 보기