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Hyundai Heavy prepares USD934 million IPO

South Korea's Hyundai Heavy Industries (HHI) has announced plans to launch an initial public offering (IPO) through which it aims to invest in capabilities including unmanned vessels.

The Ulsan-based shipbuilder said on 2 September that it aims to raise KRW1.08 trillion (USD934 million) through the market listing, which is scheduled for the middle of the month. The share sale will feature 18 million shares at up to KRW60,000 each. It is equal to about 20% equity.

HHI said the majority of funds raised through the IPO will support expansion through research and development (R&D). Projects to be supported include those to develop autonomous ships, smart shipyards, hydrogen production plants, and ships run on alternative energy.

HHI is owned in its entirety by Korea Shipbuilding & Offshore Engineering (KSOE), which acts as a holding company for the HHI Group. KSOE is also leading HHI's planned acquisition of rival shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME).

In 2019 HHI agreed to acquire DSME for about USD1.8 billion. However, the transaction has been delayed due to the Covid-19 pandemic and requirements to secure approvals from foreign countries where the two firms operate.

HHI builds a range of naval platforms including frigates, submarines, destroyers, and support vessels for the Republic of Korea Navy and export customers through its Naval & Special Ship Business Unit (NSSBU).

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