Korea Aerospace aims to price US$475 mln IPO


South Korea’s plane maker Korea Aerospace Industries (KAI) will raise at least US$475 million in what could be the biggest initial share offering in the country this year, with the indicative price range set between 14 000 won and 16 000 won per share.

KAI said in a regulatory filing on Tuesday it planned to sell 36.6 million shares with 12 million in new shares and the remainder coming from existing shares held by stakeholders such as Samsung Techwin and Hyundai Motor .

The company plans a book-building process between June 16 and June 17, according to the filing. The share sale follows Hyundai Wia’s US$466 million share sale in January, which was set above its indicative range, as the country’s stock market broke historical highs this year, reports Reuters.

South Korea’s major electronics retailer, Himart, also aims to raise up to US$443 million for its upcoming share offering.

Woori Investment & Securities and Hyundai Securities will manage the deal.

Proceeds from the IPO will be used partly to invest in facilities to develop aviation equipment and parts.

KAI, founded in 1999, posted a net profit of 78.8 billion won (US$73 million) on revenue of 1.27 trillion won for fiscal 2010. (US$1 = 1080.150 Korean Won)