Hyundai Oilbank scraps plan to go public on Kospi

Hyundai Oilbank, an oil refiner of HD Hyundai, scrapped its plan to go public on the main bourse Kospi due to unfavorable market conditions, the company said in an electric disclosure Thursday.

The oil refiner held a board meeting on Wednesday to cancel its initial public offering (IPO) slated for the latter half of this year, citing rising inflation, rate hikes and economic woes.

"We decided that we cannot continue with the IPO plan, as the company's value would not be recognized properly in the current market situation despite strong performance," said a Hyundai Oilbank spokesperson.

The company logged record revenue of 20.6 trillion won ($15.7 billion) last year, up 50.5 percent on year, and operating profit of 1.14 trillion won backed by rising oil demand. Net profit was 528.1 billion won, a turnaround from 2020's net loss of 359.3 billion won.

It was the company's third attempt at an IPO, following attempts in 2012 and 2019.

With the Kospi hovering at the 2,300 level and far from its 3,316 peak in 2021, many companies including Hyundai Engineering, SK shieldus and One store have halted their plans to go public.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]