Samsung Heavy Industries Co. on Tuesday announced that it will sell stocks to raise 1.23 trillion won (US$1.1 billion) to improve its financial health and develop eco-friendly shipbuilding technologies.
Samsung Heavy will issue 250 million common shares at 4,950 won per share, but the offering price will be finalized on Oct. 25, it said in a regulatory filing.
Of the 250 million new shares, 50 million shares, or 20 percent, will be sold to the company’s workers first, Samsung Heavy said.
Excluding shares to be sold to its workers, the rest will be allotted to its shareholders from Oct 28-29.
If shareholders fail to pay for the new shares, they will be sold to the public from Nov. 2-3, the company said.
The new shares will be traded on the main stock market starting Nov. 19.
Samsung Heavy named NH Investment & Securities Co., Korea Investment & Securities Co. and Mirae Asset Securities Co. as co-managers for the share sale.
In May, Samsung Heavy said it plans to push for the capital reduction and sell new shares to put it in better financial shape.
The shipbuilder had been suffering an accumulated deficit of over 2 trillion won.
The company cut its capital stock from 3.15 trillion won to 630 billion won by reducing the face value of its ordinary shares and preferred shares from 5,000 won to 1,000 won in July.
The capital surplus from the capital reduction will be used to repay the shipbuilder’s debts, the company said.
Source: Yonhap News Agency