Asian maritime groups to raise funds
Tuesday, 3 June 2008
Song Jung-a in Seoul and
Raphael Minder
in Hong Kong
FT Syndication Service
The Asian maritime sector is showing signs of renewed listing activity with plans by a leading South Korean ship parts maker to go public in the fourth quarter and the first listing of the year by an Asian shipping company under way in Hong Kong.
STX Enpaco, the ship parts subsidiary of STX, is planning an initial public offering that analysts expect will raise more than Won180bn ($173m). On the back of a strengthening Korean shipbuilding business, Song Woo-yik, STX Enpaco's president, said the company would sell 10 per cent of existing shares and issue 20 per cent in new shares in the initial public offering (IPO).
Separately, Wah Kwong, a family-owned shipping company, is hoping to raise as much as HK$1.28bn ($164m) in an IPO in Hong Kong this month by selling 25 per cent of the equity.
Wah Kwong started the European leg of its roadshow late last month and its IPO is seen as a litmus test for investors' appetite for the sector following some recent disappointments. Sinotrans Shipping, another Hong Kong-based shipping company, raised HK$11.45bn in an IPO in November, but its share price has slumped since amid a broader downturn.
STX Enpaco's listing plan comes as it is trying to expand capacity to meet increasing overseas orders, with ship prices expected to hit record highs for a fifth year. STX Enpaco expects this year's operating profit to be steady at Won110bn, while sales are seen rising 50 per cent to Won1,050bn.
South Korean shipbuilders are expected to post strong earnings in 2008 thanks to order backlogs that will keep them busy for more than three years.
Analysts say the STX group needs to secure capital to pursue its expansion overseas. The group started producing vessels at its new shipyard in Dalian, China, in April and it bought a controlling stake in Norway's Aker Yards last year to expand into cruise ships. Its shipping unit, STX Pan Ocean, raised $630m in an IPO last September.
Raphael Minder
in Hong Kong
FT Syndication Service
The Asian maritime sector is showing signs of renewed listing activity with plans by a leading South Korean ship parts maker to go public in the fourth quarter and the first listing of the year by an Asian shipping company under way in Hong Kong.
STX Enpaco, the ship parts subsidiary of STX, is planning an initial public offering that analysts expect will raise more than Won180bn ($173m). On the back of a strengthening Korean shipbuilding business, Song Woo-yik, STX Enpaco's president, said the company would sell 10 per cent of existing shares and issue 20 per cent in new shares in the initial public offering (IPO).
Separately, Wah Kwong, a family-owned shipping company, is hoping to raise as much as HK$1.28bn ($164m) in an IPO in Hong Kong this month by selling 25 per cent of the equity.
Wah Kwong started the European leg of its roadshow late last month and its IPO is seen as a litmus test for investors' appetite for the sector following some recent disappointments. Sinotrans Shipping, another Hong Kong-based shipping company, raised HK$11.45bn in an IPO in November, but its share price has slumped since amid a broader downturn.
STX Enpaco's listing plan comes as it is trying to expand capacity to meet increasing overseas orders, with ship prices expected to hit record highs for a fifth year. STX Enpaco expects this year's operating profit to be steady at Won110bn, while sales are seen rising 50 per cent to Won1,050bn.
South Korean shipbuilders are expected to post strong earnings in 2008 thanks to order backlogs that will keep them busy for more than three years.
Analysts say the STX group needs to secure capital to pursue its expansion overseas. The group started producing vessels at its new shipyard in Dalian, China, in April and it bought a controlling stake in Norway's Aker Yards last year to expand into cruise ships. Its shipping unit, STX Pan Ocean, raised $630m in an IPO last September.