HMM to issue new shares worth $620m

South Korean ocean carrier Hyundai Merchant Marine (HMM) will offer 120 million new shares at 5,780 won each, according to a report from the Korea Times.    South Korea’s largest ocean carrier, Hyundai Merchant Marine (HMM), plans to issue rights to raise 693.6 billion won (U.S. $620 million) to add ships to its fleet and buy stakes in shipping terminals in North America and elsewhere, according to a report form the Korea Times.
   HMM will offer 120 million new shares at 5,780 won each.
   “As Korea’s only long-distance shipping firm, it is necessary to raise capital to purchase more large containerships and acquire stakes in shipping terminals around the world,” an HMM official said, according to the report. “We will continue to work hard to enhance our core competence and cut costs to provide exporters and importers with optimal shipping solutions at affordable prices.”
   HMM is set to acquire two, 11,000-TEU containerships from Hanjin Heavy Industries & Construction in May 2018. The vessels will collectively cost about 182 billion won and are expected to be deployed on the East Coast of South America trade.
   On April 7, HMM signed a letter of intent with Daewoo Shipbuilding & Marine Engineering for the construction of five very large crude carriers (VLCCs) with an option for five more. During a board of directors meeting on Aug. 31, HMM finalized its plan to invest 470 billion won in new facilities for the construction on the VLCCs, and the plan will be financed through the New Shipbuilding Program. The 300,000-deadweight-ton VLCCs are set for delivery in the first half of 2019, HMM said.