Hyundai shipyard raises $1.12 bln through rights issue

Lim Chang-won Reporter Posted : 2018-03-12 17:24 Updated : 2018-03-12 17:24
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[Courtesy of Hyundai Heavy Industries]

SEOUL -- South Korea's top shipbuilder, Hyundai Heavy Industries, said Monday it has successfully raised about 1.12 billion US dollars by issuing new stocks, reflecting a favorable business climate this year.

Hyundai Heavy said its recapitalization worth 1.23 trillion won ($1.12 billion) was done last week. The capital increase reduced Hyundai Heavy's debt ratio from 89.9 percent at the end of last year to 78 percent. The new shares would be listed on March 27.

The shipbuilder said it would allocate about 820 billion won to improve its financial status and use the remainder for research and development. This year, Hyundai Heavy aims to secure $13.2 billion in total orders, compared to last year's $9.9 billion. So far this year, the company has received orders to build 29 ships worth $2.0 billion.

 Hyundai Heavy has predicted a slight recovery in its business this year, citing growing demands for gas-fuelled ships. As part of its restructuring, the shipbuilding group has separated Hyundai Robotics as the holding company for non-shipbuilding units so that it can focus on shipbuilding, offshore drilling, and engine making.