Retail investors had bought only about half the portion reserved for them in the Hyundai IPO. Overall too, book-building was slower than some had anticipated, with the offering eventually oversubscribed more than two times only after institutions flooded in on the last day of a three-day bidding period.
Shares of Hyundai Motor India Ltd. slid 7.2% in their Mumbai debut on Tuesday, following the nation’s largest-ever initial public offering that drew poor response from retail investors.
The stock finished its first trading session at 1,819.60 rupees ($28.47) after shares were priced at 1,960 rupees apiece, the top of the IPO’s marketed range. South Korea’s Hyundai Motor Co. sold a 17.5% stake in its Indian unit via the deal, seeking to benefit from the investor frenzy for share sales in the South Asian nation, which is one of the world’s most vibrant venues for listings this year.
