South Korea's Samsung Heavy Industries Co. last week raised 1.3 trillion won ($1.1 billion) in a rights issue to existing shareholders as planned, as part of an effort to improve its financial conditions.
The new shares were offered at 5,130 won apiece, about 20% less than the market price of 6,380 won as of Friday's close, according to the company's regulatory filing.
Its top shareholder Samsung Electronics Co., other Samsung Group units participated in the rights offering, along with the company's employee stock ownership association.
Unless the share price of Samsung Heavy drops below the new issuance price until the listing day of Nov. 19, they are expected to pocket capital gains.
The 250 million new shares were about 3% oversubscribed. Brimming with heavy order backlogs, Samsung and other South Korean shipbuilders have secured enough orders to keep operations in full swing until the first half of 2024.
Samsung already surpassed its full-year target of $9.1 billion in new orders received as of end-October and revised the 2021 target upward to $11.1 billion. Last week, it added 971.3 billion won worth of four LNG ship orders placed by a shipper from Burmuda, according to the company's filing on Oct. 25.
Clarkson Newbuilding Price Index, which tracks price changes in newly built ships, has climbed 20% year to date to 150.14 on Oct. 22. It was the first time for the index to top the 150 mark since July in 2009.
Shipbuilding prices are expected to maintain their upward trend amid the booming shipping industry. Rising ship prices are expected to offset the price increase in steel plates, the key material of vessels.
Hyundai Heavy dockyard South Korean shipbuilders, brimming with heavy order backlogs, are turning their focus to high-value and eco-friendly vessels for new orders as the industry is expected to enjoy a buoyant order book through 2030.The prices of new vessel orders placed with South Korean shi
South Korean shipbuilders, which have secured almost 97% of the orders placed for liquefied natural gas (LNG) carriers this year, expect to see their earnings improve as LNG carrier price hits an all-time high in six years.According to the global market researcher Clarkson Research Service on
Steel products made at POSCO's Gwangyang steel mill South Korea’s major steelmakers are demanding a sharp price hike for steel plates used in ships, adding to difficulties faced by domestic shipbuilders, which have yet to recover from the pandemic-caused slowdown.According to the steel an