SEOUL, Aug. 10 (Korea Bizwire) — Global top shipbuilder Hyundai Heavy Industries Co. said Tuesday that it has applied for an initial public offering (IPO), seeking to raise up to 1.08 trillion won (US$900 million) for the development of its eco-friendly ship technologies next month.
The shipbuilder has submitted the application to the top financial regulator Financial Services Commission (FSC) to sell its new shares on the local main stock market in September, it said in an emailed statement.
Hyundai Heavy Industries, a subsidiary of Korea Shipbuilding & Offshore Engineering Co. (KSOE), will offer 18 million new shares at between 52,000 won and 60,000 won each.
The shipbuilder will determine the offering price of its new shares after gauging demand from institutional investors from Sept. 2-3 and invite retail investors for its new shares from Sept. 7-8.
The proceeds from the IPO will be used to develop eco-friendly ships and autonomous ships and build smart shipyards as well as offshore hydrogen production plants, the company said.
In a separate regulatory filing, the shipbuilder said it will use 47 billion won of the total proceeds to repay its debts.
Hyundai Heavy Industries has picked Mirae Asset Securities Co., Korea Investment & Securities Co. and Credit Suisse Securities Co. as co-managers for its IPO.
In the January-June period, Hyundai Heavy Industries won new orders for 50 ships worth $7.25 billion, surpassing its annual order target of $7.2 billion won.
In March 2019, Hyundai Heavy Industries Group signed a deal with the state-run Korea Development Bank (KDB), the main creditor of its rival Daewoo Shipbuilding & Marine Engineering Co., to buy a 55.72 percent stake in the shipbuilder that had been mired in a severe cash shortage since 1999.
Under the deal, Hyundai Heavy Industry Group split Hyundai Heavy Industries into two entities — Korea Shipbuilding & Offshore Engineering (KSOE), a holding company that governs shipbuilding units under the group and handles the acquisition, and a reorganized and unlisted Hyundai Heavy Industries that focuses on the construction of ships.