HHI signs pre-IPO investment with Saudi Aramco
08 February 2019
Hyundai Heavy Industries (HHI) Group has announced that it has signed a pre-IPO investment agreement with Saudi Aramco, which is worth up to KRW 1.8 trillion. This agreement entitles Saudi Aramco to purchase a maximum of a 19.9% stake in Hyundai Oilbank. Valuing the business at KRW 10 trillion in market capitalization, Saudi Aramco is expected to buy the South Korean oil refiner’s shares for KRW 36,000 each. This contemplated investment is to be approved at the respective board meetings of the two parties.
HHI Group also stressed the significance of this agreement with Saudi Aramco is two-fold: not only will the sheer fact that the world’s largest oil company is purchasing the shares likely increase Hyundai Oilbank’s value greatly, but also this opportunity to be part of Saudi Aramco’s business network will help elevate its business capabilities to the next level.
Working closely together, the two parties are mutually benefiting each other in that HHI Group is given a chance to drive business growth and make inroads into the Middle East market while Saudi Aramco is contributing to expansion of the nation’s infrastructure and job creation.