Hyundai Heavy Industries has unveiled plans for an initial public offering in Seoul, with the funds raised set to go towards investments in "eco" shipbuilding technology.
The world’s largest shipbuilder plans to raise KRW1trn ($907m) by issuing new shares equivalent to a 20% stake in the company this year.
HHI said the money would be invested over the next five years in the development of eco-friendly and future ship designs, the development of new construction technology and the construction of eco-friendly production facilities to improve its competitiveness.
HHI is currently 100% owned by Korea Shipbuilding & Marine Engineering (KSOE), an intermediate holding company within the group.
KSOE has three shipbuilding units — Hyundai Mipo Dockyard (HMD), Hyundai Samho Heavy Industries and Hyundai Heavy Industries. Of the three companies, only HMD is stock listed.
Through this investment, HHI said it aimed to prepare for a low-carbon era, which will involve the use of alternative fuels such as hydrogen and ammonia as well as dual-fuel propulsion.
In addition, HHI said it plans to invest in companies involved in areas such as fuel cell-related technologies via mergers and acquisition or share purchases.
An official of the HHI group said: "The paradigm of the global shipbuilding industry is already changing around technology."
KSOE management said in a recent analysts briefing that global shipbuilding orders in 2020 decreased by 28% year on year.
Clarkson estimates that global shipbuilding contracts in 2021 will be 22% higher year on year.
