(MENAFN- AsiaNet News) Hyundai Motor Co, the South Korean automotive giant, refuted recent reports suggesting its contemplation of an initial public offering (IPO) for its India unit. The denial was issued on February 8, clarifying that the purported discussions were speculative and unconfirmed.
In a statement addressed to Korea's stock exchange, Hyundai emphasized that while it continuously evaluates various strategies to enhance corporate value, no concrete decisions have been made regarding an IPO for Hyundai Motor India. The company clarified, "This announcement is an explanation announcement (unconfirmed) regarding the Hyundai Motor India IPO and the competition among five global IBs, as reported in Seoul Economic Daily and other sources on February 7, 2024."
Reports circulating earlier had indicated that Hyundai Motor Co was mulling over the possibility of launching an IPO for its India unit, potentially raising approximately $2.5 billion, which could mark one of the largest listings in the country's history. However, Hyundai dismissed these claims, asserting that no definitive plans had been established.
Bloomberg, citing insider sources, had suggested that Hyundai engaged in discussions with international banks regarding the prospective IPO and might soon approach domestic advisers for further consultations. The speculated IPO could value the Indian unit at $25 billion, as per the Bloomberg report.
While acknowledging India's significance as a pivotal market, contributing to 13% of its global sales in the previous year, Hyundai underscored that deliberations surrounding an IPO for its Indian operations were still at a preliminary stage. The company affirmed its commitment to providing updates on any significant developments or decisions regarding the matter.
Hyundai Motor Co stands as the second-largest carmaker in India, underscoring the nation's importance in its global operations. However, with the IPO considerations yet to be finalized, the future trajectory of Hyundai's India unit remains subject to further evaluation and deliberation.
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