SEOUL, Jan 28 (Reuters) - South Korean builder Hyundai
Engineering Co Ltd, an affiliate of Hyundai Motor Group, said on
Friday it has decided to postpone an upcoming initial public
offering (IPO) which had been expected to raise as much as $1
Pricing had been expected to be finalised in late January,
with a listing in Seoul expected in February. The company didn't
indicate when a listing might now take place.
In a regulatory filing on Friday, Hyundai Engineering cited
difficulty receiving a proper assessment of the company's value
during institutional bookbuilding this month as one factor in
the postponement. It did not specify other factors.
In December the company, ranked among South Korea's top
seven construction firms, said it aimed to raise up to 1.2
trillion won, with an indicative price range of 57,900 to 75,700
won per share.
The offer was to consist of 4 million new shares, plus 12
million existing shares from Hyundai Engineering's shareholders,
Hyundai Motor Group Chairman Euisun Chung, Honorary Chairman
Mong-Koo Chung, Hyundai Glovis, Kia Corp
and Hyundai Mobis.
Analysts said sentiment toward the construction industry in
general has been hit after a deadly wall collapse at a different
builder's work site in Korea earlier this month, raising cost
"We see the domestic construction industry shouldering a
heavier burden in overall safety management costs after the
collapse. This is why investor sentiment has soured on
construction companies," said Kang Kyung-tae, analyst at Korea
Investment & Securities.
"The rapidly changing (overall) market situation in January,
involving liquidity taking flight from certain markets, also had
($1 = 1,205.0800 won)
(Reporting by Heekyong Yang and Joyce Lee; Editing by
Jacqueline Wong and Kenneth Maxwell)