Hyundai Oilbank files IPO request amid concerns over Iran link

Reuters, Friday 13 Apr 2012

South Korean refiner worries its alleged links to Iran might delay its Initial Public Offering

South Korean refiner Hyundai Oilbank filed for an initial public offering on Friday, the Korea Exchange said, defying market concerns that it may delay the float, worth up to $2 billion, partly due to worries over its links to Iran.

Hyundai Oilbank, a heavy user of Iranian crude, initially aimed to list in South Korea as early as May but is now more likely to go public in the second half of this year, as the stock exchange will decide on the request by June 20.

Hyundai Heavy Industries is the biggest shareholder of the company with a 91.1 per cent stake and Woori Investment & Securities is the lead manager for the deal.

The planned share sale, which would become the country's biggest IPO this year, comes after the postponement of a $500 million Hong Kong float last month by a unit of China's state-owned aluminium producer due to the impact of Western sanctions on Iran.

Hyundai Oilbank made about 20 per cent of its crude purchases from Iran last year, according to industry sources, a higher ratio than that of bigger local peer SK Energy.

Hyundai Oilbank reported a 360.7 billion won ($316.2 million) in net profit last year on 19 trillion won of sales.

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