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Hyundai Oilbank targets autumn debut
Posted on Monday, 16 April 2018 13:09
The chief executive of Hyundai Heavy Industries told reporters in a press briefing that majority-owned subsidiary Hyundai Oilbank is prepping to list in in September or October this year.
Kwon Oh-Gap said the South Korean petroleum and refinery affiliate is in the middle of picking a lead underwriter for the initial public offering (IPO) in autumn.
Reuters has previously reported the company has hired six banks to handle the listing that could fetch at least USD 1.00 billion, though local media peg the debut at up to KRW 2,000 billion (USD 1.87 billion).
If the IPO goes ahead at either of these rumoured values, the listing would be one of South Korea’s largest on record, according to Zephyr, the M&A database published by Bureau van Dijk.
Similarly, base oil and lubricant maker SK Lubricants is also preparing a first-time share sale – one worth between KRW 1,200 billion and KRW 1,500 billion.
Oilbank is a core affiliate of Hyundai Heavy Industries, which has a 91.1 per cent stake, with sales of KRW 16,700 billion and operating profit of KRW 1,200 billion in fiscal 2017.
The refiner has improved profitability by upgrading facilities to covert heavy oil to high-value, light oil such as diesel and gasoline.
According to the Investor, analysts expect Hyundai Oilbank’s income sheet will reflect a good performance this year.
The company’s sales, which reached a record-high in 2017, are predicted to continue to rise due to steady growth in the oil and non-oil refining sectors.
Furthermore, the refiner is planning to expand its traditional petrol station offering to include alternative fuels, such as hydrogen and electricity.
It wants to tap into the increasing numbers of green vehicles hitting the roads, especially as the government intends to boost these figures to 350,000 electric and 15,000 hydrogen-reliant cars in South Korea by 2022.
© Zephus Ltd