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(LEAD) Doosan Heavy to raise 1.5 tln won via new share sale

All News 17:54 November 26, 2021

(ATTN: RECASTS slug, headline and lead; UPDATES with details throughout; ADDS byline, photo)
By Nam Kwang-sik

SEOUL, Nov. 26 (Yonhap) -- Power plant builder Doosan Heavy Industries & Construction Co. said Friday its board of directors has decided to raise 1.5 trillion won (US$1.3 billion) by selling new shares to repay its debts and invest in eco-friendly business.

Of the proceeds, 700 billion won will be used to repay its debts, while 800 billion won will be invested in its new growth businesses, such as hydrogen turbines, offshore wind farms and small modular reactors (SMRs), Doosan Heavy said in an emailed statement.

SMRs refer to modules comprising reactors, steam generators, coolant pumps and pressurizers, which are key components of large-scale nuclear power plants.

A wind farm built by Doosan Heavy Industries & Construction Co. in Jangheung, about 400 kilometers south of Seoul, is seen in this photo provided by the power plant builder on Nov. 4, 2021. (PHOTO NOT FOR SALE) (Yonhap)

The company will spend about 300 billion won on hydrogen turbines by 2026 and about 200 billion won on offshore wind farms.

In a regulatory filing, Doosan Heavy said it plans to issue 82.87 million common shares at 18,100 won apiece.

The issuing price of new shares will be finalized on Feb. 7.

Of the total shares, 20 percent will be allotted to the company's workers on Feb. 10, with the rest to be sold to shareholders from Feb. 10-11.

If shareholders fail to pay for the new shares, they will be sold to the public, the company said.

The new shares will be traded on the local main stock market starting on March 4.


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