By Nam Kwang-sik

SEOUL, Sept. 6 (Yonhap) -- Global top shipbuilder Hyundai Heavy Industries Co. said Monday that it has set its initial public offering (IPO) price at 60,000 won (US$51.80), after gauging demand from institutional investors last week.

The price was set at the upper end of Hyundai Heavy's initially proposed IPO price.

Hyundai Heavy will raise $1.08 trillion won via the IPO upon on debut on Sept. 16.

After starting trading on the main local stock market, Hyundai Heavy's market value will reach 5.33 trillion won, the company said in a regulatory filing.

Hyundai Heavy will invite subscription from retail investors from Tuesday to Wednesday.

Hyundai Heavy allocated 55 percent, or 9.9 million shares, of the total to institutional investors, it said in a separate emailed statement.

The proceeds from the IPO will be used to develop eco-friendly ships and autonomous ships, and build smart shipyards, as well as offshore hydrogen production plants, the company said.

Of the proceeds, 310 billion won will be invested in the development of eco-friendly ships and autonomous ships, with 320 billion won for smart shipyards to be based on IT technologies and 130 billion won for offshore hydrogen production plants, Hyundai Heavy said.

ksnam@yna.co.kr
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