Hyundai Oilbank will hold an IPO late next yearHyundai Robotics, the holding company of Hyundai Heavy Industries Group, decided to pursue an initial public offering of its oil refining subsidiary, Hyundai Oilbank, with the aim of strengthening its financial stability and generating cash for investment in new business portfolios.
Hyundai Robotics is the largest shareholder of Hyundai Oilbank, with 91.1 percent ownership. Under a planned process by the group, Hyundai Oilbank will be listed in the local stock market by the second half of next year. It has been a stable cash cow for Hyundai Heavy Industries Group. Until the third quarter this year, it recorded an accumulated 11.7 trillion won ($10.88 billion) in revenue and 859 billion won in operating profits. The oil refiner is expecting to surpass 1 trillion won in operating profits by this year.
On the same day, shipbuilder Hyundai Heavy Industries also opened up a board of directors meeting and decided to increase capital by issuing new stocks worth 1.29 trillion won. The cash will be used to pay back debt of three shipbuilding affiliates under the group, including Hyundai Samho Heavy Industries.
By Kim Jee-hee
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