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Posco Specialty Steel, which is owned by Korean steelmaker Posco, has decided to withdraw its initial public offering, which was intended to raise between W392 billion and W462 billion ($361 million to $426 million), a source said Friday.
The company, which produces high-quality steel for automobiles, machinery, nuclear power plants, shipbuilding, aeronautics and electronics, was planning to sell 14 million shares at a price between W28,000 and W33,000 each. The listing was targeted for December 14.
The volatile market conditions have made it difficult for would-be issuers to take advantage of rising stock indices, leading a total of 78 companies in Asia ex-Japan to withdraw their IPOs so far this year, according to Dealogic. There were five such cases in November alone, including Posco Specialty Steel, the data show, but the year-to-date figure is far lower than last year when a total of 128 companies withdrew new listings.
With regard to Posco Specialty Steel, the order book was not strong enough and the price that investors were willing to pay was too low for the company to want to go ahead with the deal, the source said. In particular, the demand from domestic investors was not as strong as expected, the person said.
There is a possibility that the deal will come back in the future, but there is no view on that at this point, the source added.
If successful, the IPO would have been the biggest in Korea this year, exceeding CJ HelloVision that started trading on November 9, according to Bloomberg data. South Korea
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| 5205Z NACHI | 25 | 52 | 20.6 |
| 5204AZ NACHI | 20 | 47 | 20.6 |