Hyundai Rotem, the railway manufacturer withdraws IPO indefinitely
Hyundai Rotem of South Korea had announced the indefinite postponement of its inital public offer for its shares. An anonymous source with direct knowledge of the matter said the weak market conditions as well as ongoing industrial disputes as the causes for the decision. This only confirmed an earlier report from the business newspaper Maeil.
Local media analysts previously estimated that the volume of the planned IPO to be between KRW 300 billion and KRW 400 billion or between USD274 million and USD366 million.
The announcement comes as a surprise as it recently landed a KRW450 billion in Brazil. The said order was made by the Sao Paulo transportation authority. The city is building a large metro system for the city in time for the country's hosting of the Summer Olympics and the World Cup.
When sought for comment, the officials for the railway vehicle manufacturer refused to provide an official statement. Hyundai Motor owns 57.6% of the company. The company also refused to make any comment on the news report.