By Joyce Lee and Jihoon Lee

SEOUL (Reuters) -Hyundai Heavy Industries’ shares closed 86% above their initial public offering (IPO) price on their trading debut in South Korea on Friday.

One of the most important shipbuilders in the world raised $935million from its IPO. Most of this money was used to finance investments in new technology.

According to Hyundai Heavy, 1,633 institutional investors from both domestic and abroad placed bids for shares to be acquired earlier in the month. The total value of all bids was 1,130 trillion won (962.3 billion),

1,836 institutional investors had covered the IPO, making it the second largest IPO in South Korea since SKIET.

Kim Hyun from Meritz Securities said that the rise in container shipping fares since the COVID-19 pandemic has resulted in an increase of ship orders and a higher price for shippers.

Hyundai is well-positioned to compete if there are stronger environmental regulations and more testing of alternative fuels.

Hyundai Heavy intends to spend about 760 billion won on future technology investments, such as eco-friendly vessels and smart shipyards.

Following the 2019 announcement, Hyundai Heavy Industries Group needs regulatory approvals from South Korea Japan, the European Union and South Korea for its plan to acquire rival Daewoo Shipbuilding.

($1 = 1,174.2200 won)