Seoul — South Korean shipbuilder Hyundai Heavy Industries has raised $935 million after pricing its IPO at the top of its indicative range, with much of the proceeds set to fund investments in new technology.
It offered 18 million new shares or 20% of shares outstanding in a range of 52,000-60,000 won per share.
It is expected to list on the KOSPI on Sept. 16.
Hyundai Heavy plans to use about 760 billion won ($660 million) of the proceeds to invest in future technologies, including eco-friendly ships and digital ship technology, smart shipyards and hydrogen infrastructure, it said in a statement last week.
It reported 3.9 trillion won ($3.4 billion) in revenue and an operating loss of 394 billion won for the first half of this year. In 2020, it reported 8.3 trillion won in revenue and a 32.5 billion won operating profit.
Hyundai Heavy and affiliate shipbuilders such as Hyundai Mipo and Hyundai Samho are part of a conglomerate headed by Hyundai Heavy Industries Holdings, one of the largest shipbuilding groups in the world.
Hyundai Heavy Industries Group is still awaiting regulatory approvals from South Korea, Japan and the European Union for its planned acquisition of rival Daewoo Shipbuilding, after the deal was announced in 2019.
($1 = 1,156.0400 won)
($1 = 1,155.9000 won)
- Reuters (Reporting by Joyce Lee; Editing by Christian Schmollinger and Edwina Gibbs)