[THE INVESTOR] Local refiner Hyundai Oilbank is likely to postpone its highly anticipated initial public offering to next year because of a delayed audit and dismal market conditions, according to sources on Nov. 9. 

The firm received the green light for listing from the Korea Exchange after a preliminary screening in August, but it is still awaiting a financial audit by the Financial Supervisory Service and the Korean Institute of Certified Public Accountants, a procedure necessary for IPOs. Even if it gets approval this month, it will be impossible to go public this year as it takes an average of three months to complete the listing procedures, according to sources. 

The refining subsidiary of Hyundai Heavy Industries Group has reportedly told the financial authority that it has deferred its planned IPO due to uncertain market conditions. 

Industry watchers have projected the share sale could raise 2 trillion won (US$1.77 billion) to 3 trillion won with a market cap of 10 trillion won. The successful listing could break the record set by game publisher Netmarble Games last year, which raised 2.66 trillion won to become the second-largest IPO here after Samsung Life Insurance with 4.9 trillion won. 

Many local firms have recently pushed back their IPO plans due to growing stock market volatility that makes it difficult to project the market demand. SK Lubricant dropped its up to 1.6 trillion won IPO plans in April after failing to get a desired valuation. Kakao Games in September canceled its listing amid a delay in audit procedures. 

As of this year, Korea’s total value of IPOs came to 1.8 trillion won and industry watchers project it would be difficult to break the 3 trillion won mark as blockbuster deals are falling apart. Last year, the total value came to 7.8 trillion won.

By Ahn Sung-mi (sahn@heraldcorp.com)