Samsung Heavy selling shares to raise USD1bn

South Korea’s Samsung Heavy Industries (SHI) is looking to raise up to KRW 1.1 trillion (USD 982.9 million) through a rights offering in an aim to cut its losses and secure liquidity, the company said in a stock exchange filing.

The company added that it plans to issue 159.1 million of new shares at a price of KRW 6,920 each. The new shares are set to be listed on November 28, 2016.

The move was made in response to a drop in shipbuilding orders seen at the country’s Big Three shipbuilders, namely Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering (DSME) and Hyundai Heavy Industries (HHI), all of which are currently undergoing restructuring.

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Despite narrowing its loss during the second quarter of the year, Samsung Heavy Industries stayed in the red as it reported a net loss of KRW 212.3 billion in the second quarter, compared to a net loss of KRW 1.15 trillion reported in the same quarter of 2015.

The shipbuilder’s net loss for the first half of the year accumulated to KRW 196.4 billion, compared to a net loss of KRW 1.14 trillion seen in the same period in 2015.