Samsung Heavy to sell shares in raising 1.23 trillion won for paying debts

Samsung Heavy Industries Co. will sell stocks to raise 1.23 trillion won to improve its financial health and develop eco-friendly shipbuilding technologies.

The shipbuilder will issue 250 million common shares each priced at 4,950 won, with the offering price being finalized on Oct. 25.

The company's workers will be prioritized in buy 50 million shares of the total shares, or 20 percent.

Those not acquired by its workers will be allotted to its shareholders from Oct 28 to 29.

Meanwhile, new shares left unpaid by shareholders would be sold to the public from Nov. 2 to 3.

The new shares will be traded on the main stock market starting Nov. 19.

NH Investment & Securities Co., Mirae Asset Securities Co., and Korea Investment & Securities Co. were the co-managers for the share sale.

The shipbuilder had been suffering an accumulated deficit of over 2 trillion won.

In July, the company reduced the face value of its ordinary shares and preferred shares from 5,000 won to 1,000 won to reduce its capital stock from 3.15 trillion won to 630 billion won.

The capital surplus from the capital reduction will be used to repay the shipbuilder's debts, the company said.