Samsung Engineering Co., which is currently pushing ahead with a capital increase worth 1.2 trillion won (US$1.02 billion), will seek to sell the newly issued stocks to overseas institutional investors.
According to investment banking (IB) industry sources on Jan. 3, Samsung Engineering and its organizers Korea Investment & Securities Co. and NH Investment & Securities Co. will hold investor relations (IR) for overseas institutions in Hong Kong and Singapore within this month. Earlier, Samsung Engineering reported an operating loss of 1.48 trillion won (US$1.25 billion) in the third quarter. In a bid to recover from the status of the capital impairment, the company has decided to increase capital by issuing 1.2 trillion won (US$1.02 billion) worth of new stocks on Dec. 7.
An official from the IB industry said, “At the moment, only 10 percent of old foreign shareholders have the right to participate in the paid-in capital increase. An interesting point to note is how much the company can additionally raise the foreign stock ownership ratio to participate in the paid-in capital increase with overseas IRs.”
Meanwhile, Samsung Engineering’s stock closed at 14,550 won (US$12.36) on Dec. 30, up 16.87 percent, or 2,100 won (US$1.78), from the previous day. The figure increased by a whopping 51.56 percent from 9,600 won (US$8.15) of the basic price of ex-rights on Dec. 29. Its shares show strength after the company won orders from Samsung BioLogics Co. to build a third production facility worth 850 billion won (US$721.87 million) and Samsung Electronics to build environmental facilities worth 523.6 billion won (US$444.67 million) in Hwasung and Pyeongtaek.