[Photo provided by Hyundai Heavy Industries Co.]
Global shipbuilding giant Hyundai Heavy Industries Co. (HHI) has completed forming the syndicate to underwrite its initial public offering at the Kospi market later this year.
HHI named Mirae Asset Daewoo, Korea Investment & Securities and Credit Suisse as its lead underwriters, with KB Securities and Hana Financial Investment joining the syndicate, according to industry sources on Tuesday.
Its parent Korea Shipbuilding & Offshore Engineering said earlier in a disclosure that HHI will issue new shares tantamount to 20 percent of outstanding shares to raise 1 trillion won ($890.7 million) without yielding any shares owned by the parent. The banks estimate the shipyard’s value at 5 trillion to 6 trillion won.
The proceeds will be used to develop eco-friendly vessels run on hydrogen or ammonia and autonomous ships to take a new leap forward to become a global shipbuilder having strengths in environmental, social and governance (ESG) factors. On Wednesday, HHI and Saudi Arabia’s Aramco signed a deal to launch hydrogen and ammonia business.
HHI posted 101.5 billion won in operating profit and 6.3 trillion won in sales from January to September last year on a consolidated basis, while its net loss reached 67.6 billion won. The company’s earnings results for the half of this year would have a huge impact in calculating its IPO value.
A market analyst said HHI is truly the world’s leading shipbuilder, and it needs to promote its new business plan effectively to increase its IPO value.
By Kang Woo-seok and Choi Mira
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]