Hyundai Rotem files for IPO to raise up to $575 million
SEOUL, Sept 17
SEOUL, Sept 17 (Reuters) - South Korean train maker Hyundai Rotem said it plans to raise up to 622.4 billion won ($575 million) in an initial public offering in what would be the country's biggest share sale so far this year.
Hyundai Rotem, owned by Hyundai Motor Co and a Morgan Stanley fund, said in a filing late Monday that it planned to sell 21 million new shares and 6 million existing shares at a price of between 17,000 won and 23,000 won each. It plans to announce its final price on Oct. 21.
Approved by South Korea's stock exchange in June, Hyundai Rotem's public offering plan has progressed slowly because of labour disputes during annual wage negotiations, a source who had direct knowledge of the matter told Reuters.
Hyundai Rotem, founded in 1999, controls over 90 percent of the domestic train market, while its global share stands at a meager 2 percent to 3 percent. The maker of high-speed trains also engages in plant construction.
Hyundai Rotem reported an operating profit of 175 billion won for 2012 on 3.07 trillion won of revenue.
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