KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Hyundai Motor India Ltd. is poised to begin trading in Mumbai on Tuesday after a $3.3 billion initial public offering (IPO), marking India’s largest-ever IPO. The offering valued the Indian unit of South Korea’s Hyundai Motor Co. at approximately $19 billion, with the parent company selling a 17.5% stake in India’s second-largest carmaker.
The IPO, although oversubscribed by more than two times, saw slower-than-expected demand during the book-building process, with strong institutional interest coming in on the last day of sale. However, retail investors only purchased about half of the shares reserved for them, possibly due to concerns about all proceeds going to the parent company and cooling demand in India’s auto industry.
New listings in India have performed well, with the country’s IPOs rising by an average of 39% on their first day this year, according to Bloomberg data. However, Hyundai Motor India’s valuation poses a challenge, as it is five times more expensive than its Korean parent but in line with local competitors like Maruti Suzuki India Ltd.
Analysts, including Devi Subhakesan of Investory Pte, see long-term value in the IPO, particularly given India’s expanding middle class and its trajectory to become a major car market, reaching 20 million units by 2047.
With this deal, Indian IPOs have raised more than $12 billion so far in 2024, surpassing the previous two years but still below the $17.8 billion record of 2021. Other major IPOs pending include Swiggy Ltd. and the renewable energy arm of NTPC Ltd.
The stock will start trading at 10 am in India on Tuesday, setting the stage for further major listings in Asia-Pacific this week.
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