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Korean yards dash for IPO bonanza

Korean yards dash for IPO bonanza

Seoul: Amid record orders the fever of initial public offering will likely sweep the shipbuilding industry in the second half, reports Korea's Financial News. Korean shipbuilders are scrambling to list their affiliates on the stock market, as the value of their affiliates has soared in the wake of an unprecedented boom in the shipbuilding sector. The most aggressive of these companies is STX Group. STX PanOcean will likely make its debut in the Korean stock market in late September - a dual listing following its successful Singapore debut two years ago. The company is reportedly seeking an IPO valued at 500 billion won in the local bourse. Then there is a growing chance that STX Enpaco and STX Heavy Industries and Construction will be listed some time after next year. Once these are listed, six of the eight companies under STX Group will have gone public by next year. These include STX, STX Shipbuilding and STX Engine that were listed already.
Kim Soo-jin, a senior researcher with Korea Investment Trust, said, "We have adjusted upward the value of STX's affiliates, including STX PanOcean and STX Heavy Industries, from 1.812 trillion won to 2.0212 trillion won."
Daewoo Shipbuilding & Marine Engineering is also seeking IPO of DSEC. DSME owns a 100 percent stake in DSEC, which was established in 2003. DSEC is engaged in design and provision of plant facilities and structure, as well as supply of shipbuilding supplies and equipment. The company showed sound performance last year by earning 4.2 billion won in net profit on 171.3 billion won in sales. DSME is considering listing DSEC to raise capital for investment by banking on DSEC's improving performance stemming from the booming shipbuilding sector. DSME will soon take steps for DSEC's listing through consultation with Korea Development Bank, its majority stakeholder. DSME will also likely seek listing of Mangalia Heavy Industries in Romania.
Meanwhile, C&Group, a sprawling shipping empire with building interests, is also taking steps for a backdoor listing through the transfer of business. The company has decided to hand over core business of C& Heavy Industries, which was established last November, to C&Jindo, a listed concern.
Hanjin Heavy Industries & Construction is also expected to pursue listing of its affiliate on the market, though the company will not be drawn on the issue. [16/08/07]

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