Recently, South Korean mid-sized shipbuilder DH Shipbuilding (formerly Daehan Shipbuilding) has finalized its initial public offering (IPO) price at 50,000 KRW per share (approximately $36.30), reaching the upper limit of the price range. The company plans to list on the KOSPI main board through this IPO, with an expected fundraising scale of 500 billion KRW (about $363 million). Its post-listing market capitalization is projected to exceed 1.9 trillion KRW.
According to the latest disclosure, during the institutional bookbuilding from July 11 to 17, a total of 2,106 domestic and foreign investment institutions participated in the subscription, with total demand reaching 1.516 billion shares—an oversubscription rate of 275.7 times. Among them, 2,104 institutions bid at or above 50,000 KRW, ultimately setting the final offering price at the top of the range (42,000–50,000 KRW). Notably, 57% of allocated institutions agreed to a 15-day lock-up period, while 234 institutions voluntarily extended their lock-up to three months, reflecting professional investors’ long-term confidence in the industry’s prospects.
Historical records show that DH Shipbuilding’s predecessor, Daehan Shipbuilding, was controlled by state-owned Korea Development Bank after the 2009 shipbuilding market collapse and underwent bankruptcy restructuring. In 2022, KH Investment acquired approximately 90% of DH Shipbuilding’s shares from the bank for about $200 million.
Market analysts attribute the subscription frenzy to the cyclical recovery of the shipbuilding industry. After weathering the industry downturn, DH Shipbuilding achieved a turnaround starting in 2021, driven by rising new vessel prices and surging orders. Last year, its revenue surpassed the 1 trillion KRW milestone, with an operating profit margin of 14%.
The raised funds will primarily be allocated to green ship technology R&D, design capability upgrades, and international marketing network expansion to enhance global order competitiveness. Retail investor subscriptions will take place on July 22–23, with the stock expected to debut on August 1.
