South Korean shipbuilding group Hyundai Heavy Industries (HHI) has announced a plan to raise about $1.2bn via a share issue in a move to strengthen its financial status.
According to HHI, the rights issue is expected to be completed by March 2018 and the proceeds will be used to improve its financial structure as well as for research and development.
In addition, HHI has announced that its holding company, Hyundai Robotics, will list refining subsidiary Hyundai Oilbank in an IPO in the second half of 2018.
HHI said the two moves are part of the group’s efforts to improve the financial status of its affiliates after switching to a holding company structure earlier this year to prepare the group for a shipbuilding industry recovery from 2019.