Hanjin Transportation selling 100 billion won of new shares
Hanjin Transportation will be issuing 100 billion won ($84 million) of new shares, the company's board decided Thursday.
The logistics company, 23.6 percent owned by Hanjin KAL, announced plans to sell 2,972,972 new shares for 35,150 won each to strengthen its balance sheet.
It is the first time for the company to issue new shares since 2000.
The final price will be determined on Oct. 23. Registration for Hanjin Transportation employees and existing shareholders starts on Oct. 28.
The new shares will begin trading Nov. 18.
Hanjin Transportation's market capitalization stands at 560.4 billion won. Its shares closed at 46,800 won on Thursday, up 1.52 percent, before the sale of new shares was announced.
Once the new shares are issued, the total number of shares outstanding will increase from the current 11,974,656 to 14,947,628.
Hanjin Transportation is currently constructing a mega hub terminal in Daejeon and is investing in automation. It also plans to open a global distribution center at Incheon International Airport, targeting overseas deliveries made by e-commerce companies. A total of 480 billion won is expected to be invested by the company by 2023.
Hanjin Transportation sold assets this year, including its car rental business in April.
BY JIN MIN-JI [firstname.lastname@example.org]