South Korean steelmaker Nexteel Co. said Tuesday it will use an upcoming initial public offering (IPO) as a springboard for further nurturing its competitive edge.
Nexteel is slated to list 7 million shares on the country’s main stock market on Aug. 21, aiming to raise up to 87.5 billion won (US$67.6 million) via the bourse’s first IPO this year.
The steelmaker said the proceeds from the share sale will be spent on diversifying its business portfolio, including the establishment of a U.S. subsidiary and entry into new markets.
“Unstinting investments will be made in technology development in order to emerge as a global steel pipe maker with high competitiveness,” Nexteel CEO Hong Seong-man said in a meeting with reporters on its IPO plan.
Set up in 1990, Nexteel is a steel pipe manufacturer and distributor, with oil pipelines and oil country tubular goods among its main products.
Nexteel has hired domestic brokerage house Hana Securities Co. as the lead manager of the upcoming IPO. The company is hoping to sell shares at a price range of 11,500 won ($8.90) to 12,500 won, with its market value estimated to reach up to 325 billion won after the IPO.
Nexteel said it plans to finalize its IPO price after a demand forecasting session for institutional investors Tuesday and Wednesday, with a public subscription set for next Wednesday and Thursday.
Source: Yonhap News Agency