South Korean shipbuilder Samsung Heavy Industries has taken the market by surprise with plans for a KRW 1trn ($888m) fundraiser.
The rights offering comes despite SHI reportedly holding KRW 1.2trn in cash as of the first quarter. Plus, management expects further cash inflows of KRW 600bn related to advanced payments for orders secured in the fourth quarter.
SHI’s management has said the rights offering would improve the shipbuilder’s balance sheet with its debt-to-equity ratio to fall from 321% to 198%.
