Hyundai Motor India’s $3.3 billion IPO was 18% subscribed on its first day, mainly by employees who bought 80% of their reserved shares.
This three-day sale, the first by an automaker in India in 20 years, ends Thursday. Before public bidding, institutional investors, including BlackRock and Fidelity, purchased $989.4 million in shares.
This IPO is Hyundai’s first outside South Korea and comes as many companies aim to go public in India’s booming stock market, which has seen over 260 companies raise more than $9 billion this year.
It’s the world’s second-largest IPO this year, after Lineage Inc’s $5.1 billion flotation in July.
Hyundai offered employees a discount of ?186 per share, with prices set between ?1,865 and ?1,960, following protests for share allocation at their main plant in Chennai.
Qualified institutional buyers took 5% of their share allocation, while retail investors bought 26%.
Hyundai aims for a $19 billion market valuation, about 40% of its parent company’s value. Trading is set to start on Oct. 22.
As India’s No. 2 carmaker with a 15% market share, Hyundai faces competition from local companies like Tata Motors and Mahindra & Mahindra.
Increasing production capacity will help Hyundai compete better against Maruti Suzuki and maintain its lead over Tata and Mahindra.
($1 = ?84.06)
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