TEHRAN, Young Journalists Club (YJC) -South Korea’s Hyundai Heavy Industries Group plans to list its refining arm Hyundai Oilbank in an IPO in 2018 and raise about $1.2 billion via a share issue by shipbuilder Hyundai Heavy Industries (009540.KS), in a move to bolster its finances.
Hyundai Heavy Industries, the flagship company of South Korea’s ninth-largest conglomerate, said on Tuesday that Hyundai Robotics (267250.KS), the group’s holding company, has decided to list refining subsidiary Hyundai Oilbank [INPTVH.UL] in an initial public offering (IPO) in the second half of 2018.
The shipbuilder also said it will issue rights shares worth about 1.3 trillion won ($1.21 billion). The two moves are part of the conglomerate’s efforts to improve affiliates’ financial soundness after switching to a holding company structure earlier this year, it said.
Hyundai Oilbank, South Korea’s smallest refiner by capacity, is 91.1 percent owned by Hyundai Robotics.