Hyundai Heavy Industries Co (HHI), flagship shipbuilder under Korea Shipbuilding & Offshore Engineering (KSOE) on Sept. 3 prices 18 million initial shares at a band of 52,000 won to 60,000 won to raise up to 1.08 trillion won ($935.4 million).
All the offerings would be in new issues.
According to its IPO prospectus, it hopes to price the shares at between 52,000 won and 60,000 won, which would allow the shipbuilder to raise from 936 billion won to 1.08 trillion won. Price will be announced on Sept. 6 after book-building sessions on Sept 2-3.
A total of 4.5 million shares will be available for retail investors, plus any remainder from 3.6 million pieces reserved for HHI employees.
Public subscription is on Sept 7-8.
Mirae Asset Securities, Korea Investment & Securities, and Credit Suisse are main book runners. Hana Financial Investment and KB Securities are joint book runners.
HHI will use the IPO proceeds on green vessel technology R&D projects, such as hydrogen and ammonia-fueled vessels as well as other eco-friendly energy projects.
The shipbuilder in January unveiled its plan to raise about 1 trillion won by newly issuing shares worth 20 percent of its entire stake. It passed the Korea Exchange’s preliminary IPO review last Thursday.
Market experts anticipate HHI to make another blockbuster IPO of this year, given its bright prospect. The worldwide shipbuilding order in the first half of this year already exceeded last year’s record, boding well for HHI, the largest shipyard in the world. The Korean shipbuilder bagged $7.25 billion worth of orders in January-June this year, already overachieving this year’s annual goal.
On Wednesday, shares of KSOE, the holding entity of the Hyundai shipbuilding family, closed 2.81 percent lower at 121,000 won in Seoul.
Source: Pulse