Hyundai Motor Group takes 3rd in market cap

Hyundai Motor Group Executive Chair Chung Euisun, right, inspects electric vehicles at the Hyundai Motor India Engineering Private Limited (HMIE) in Hyderabad, Aug. 8, 2023. Courtesy of Hyundai Motor Group

Hyundai Motor Group took the third-highest spot on the Korean stock market in terms of aggregated market capitalization, surpassing that of LG Group, Monday.

According to the database of the Korea Exchange (KRX), as of 3:30 p.m. on the day, the total market capitalization of Hyundai Motor Group’s 12 listed companies amounted to 158 trillion won ($114 billion), which is about 2.5 trillion won higher than LG Group’s 11 listed companies that are valued at a total 155.5 trillion won on the stock markets.

Hyundai Motor Group’s total market cap follows only Samsung Group’s 650 trillion won and SK Group’s 237 trillion won.

At the end of last year, Hyundai Motor Group’s affiliated listed companies held an aggregated market capitalization of 133 trillion won, while LG Group’s affiliated listed firms amounted to 186 trillion won.

The rise of the market capitalization of the automotive conglomerate is mainly attributed to Hyundai Motor’s slated IPO debut on India’s stock market. Hyundai Motor owns a 100 percent stake in its Indian unit, Hyundai Motor India.

Reflecting the market’s high anticipation over the public offering of the Indian subsidiary, the stock price of Hyundai Motor soared to 283,500 won, right after the beginning of the trading session on Monday, up 5.78 percent from the previous trading day. It surged to 285,000 won at around 9:10 a.m., setting a new 52-week high.

The stock finished at 278,500 won, a 3.92 percent increase from Friday. Kia’s stock also rose by 5.22 percent on Monday’s session, finishing at 129,100 won.

“In order to list Hyundai Motor India Limited on the Indian stock market, Hyundai Motor submitted a Draft Red Herring Prospectus — a preliminary document required for an IPO in India — to the Securities and Exchange Board of India (SEBI),” the car company stated in its public disclosure, Monday.

“The final decision on the listing will depend on market conditions, as well as a preliminary demand assessment and other factors. 카지노사이트킹 The company plans to make further announcements about the IPO procedures at the appropriate time or within six months,” the disclosure added.

Market analysts estimate that the completion of Hyundai Motor’s Indian subsidiary IPO will lead to a double-digit-percent increase in the Korean headquarters’ stock price.

“When reflecting optimistic forecasts, Hyundai Motor’s corporate value could potentially increase by about 16.8 trillion won, or 29.9 percent, compared to the current stock price,” Lee Jae-il, an analyst at Eugene Investment & Securities, pointed out.

As of the end of last year, LG Group was ranked second in terms of aggregated market capitalization of conglomerates, following Samsung Group. However, this year it has slipped to fourth place, behind SK Group and Hyundai Motor Group.

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