Hyundai Heavy Industries to go public on Korean stock market this year
SEOUL, Hyundai Heavy Industries Co., South Korea’s leading shipbuilder, said Tuesday it will raise 1 trillion won (US$907 million) by listing its shares on the main bourse this year for its environment-friendly business.
Hyundai Heavy said it will issue new shares equivalent to a 20 percent stake in the company to finance its eco-friendly business projects following the initial public offering on the Korea Exchange within this year.
The shipbuilder said it plans to use the proceeds from the new share sale to build eco-friendly shipbuilding facilities and develop eco-friendly ships in order to sharpen its competitive edge.
Hyundai Heavy Industries will also push to merge and acquire companies that have fuel cell-related technologies.
The plan to trade its shares on the Seoul bourse came as the company judged that shipbuilding business conditions have started to recover from the slump caused by the coronavirus pandemic last year, it said.
Global new orders for ships are expected to rise 21 percent to 23.8 million compensated gross tons (CGTs), or 974 ships, this year compared with last year, the shipbuilder said, citing data provided by global market researcher Clarkson Research Service.
From 2022 to 2025, the global new orders are forecast to reach 35.1 million CGTs, or 1,552 ships, on annual average, the company said.
The Shanghai Containerized Freight Index, a barometer of global freight rates, came to a new high of 2,885 on Jan. 15, since 2009, Hyundai Heavy Industries said.
Korea Shipbuilding has three shipbuilding units — Hyundai Mipo Dockyard Co., Hyundai Samho Heavy Industries Co. and Hyundai Heavy Industries — under its wing. Of the three companies, only Hyundai Mipo Dockyard is listed on the local main bourse.
Source: Yonhap News Agency