This photo shows the Okpo Shipyard of Hanwha Ocean Co. on Geoje Island, 330 kilometers southeast of Seoul, on Aug. 22, 2023. (Yonhap)
SEOUL, Aug. 23 (Korea Bizwire) — Major South Korean shipbuilder Hanwha Ocean Co. said Wednesday it will raise 2 trillion won (US$1.5 billion) via a rights offering to secure funds for facility investments and other purposes.
Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering Co. (DSME), will issue some 89.48 million common shares at a price of 22,350 won per share, the company said in a regulatory filing.
Existing shareholders will be allowed to apply to buy new shares between Nov. 8 and 9, with the subscription period for public investors slated for Nov. 13 and 14.
Hanwha Ocean said the proceeds from the stock sale will be used to secure a foothold in overseas defense markets and advancing its shipbuilding technologies, including the development of an eco-friendly propulsion system and green vessels.
In particular, about 900 billion won will be spent to establish an overseas production base and develop top-of-the-line technologies, it added.
Hanwha Ocean said the company is targeting to register an operating profit of 5 trillion won on sales of 30 trillion won by 2040 through such investments.
In May, Hanwha Ocean set sail as the shipbuilding arm of South Korea’s No. 7 conglomerate Hanwha Group after obtaining regulatory approval for its purchase of a 49.3 percent stake in DSME and managerial control.
Hanwha Ocean shares closed down 1.81 percent at 35,200 won on the main stock market Wednesday, underperforming the broader market’s 0.14 percent loss.
(Yonhap)
