IMM Private Equity explained that the increase in investment followed higher number of inquiries it received from institutional investors after the pre-IPO investment announcement in April.
Under the agreement signed in April between Hyundai Samho and the private equity firm, the former will issue 5.36m new convertible preferred shares and the latter will pay KRW300bn to acquire the shares at KRW56,000 per share.
“We see the shipbuilding industry hit the historical low, and now is heading toward recovery. Bearing that in mind, it seems natural that investors are showing interests in making investment in Hyundai Samho, a leading shipbuilder,” said an officer from IMM Private Equity.
In the first quarter, Hyundai Samho registered revenue of KRW734.3bn and operating profit of KRW43bn. At end-May, the shipbuilder clinched new orders of 15 ships valued at KRW1bn, including four LNG-fuelled 114,000-dwt ice-class aframax tankers from Russia’s Sovcomflot.
By end-June, IMM Private Equity is scheduled to have invested KRW100bn for the pre-IPO shares of Hyundai Samho.