Hyundai Heavy Industries plans 2021 IPO

Hyundai-Heavy-Industries

Hyundai Heavy Industries Group has decided to push for an initial public offering of its unlisted affiliate Hyundai Heavy Industries Co. within 2021. The business group is planning to raise 1 trillion won through the IPO and invest the funds in future projects such as eco-friendly and self-sailing ships.

Hyundai Heavy Industries Group said on Jan. 26 that it was planning to issue new shares amounting to about 20 percent of its total stake in Hyundai Heavy Industries Co. by the end of this year.

Hyundai Heavy Industries Group split Hyundai Heavy Industries Co. into Korea Shipbuilding & Offshore Engineering (KSOE), an intermediary holding company, and Hyundai Heavy Industries Co. in 2019. The group created the intermediary holding company to facilitate its acquisition of Daewoo Shipbuilding & Marine Engineering (DSME). KSOE has a 100 percent stake in Hyundai Heavy Industries Co.

Hyundai Heavy Industries Group has decided to list Hyundai Heavy Industries Co. as the shipbuilding industry is recovering, and it needs funds for investment in future technologies. Global shipbuilding orders in 2021 is expected to reach 23.8 million CGTs (974 ships), up 21 percent from the previous year, according to Clarkson Research, a British shipbuilding and shipping analysis company.

[businesskorea.co.kr]

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