[Asia Economy Reporter Dongwoo Lee] SM Line, the main affiliate of SM Group's shipping division, has officially launched its initial public offering (IPO).
On the 25th, SM Line announced that it is preparing for the IPO in earnest, leveraging last year's record annual operating profit of approximately 140 billion KRW, the highest since its founding.
Recently, it signed an underwriting agreement with NH Investment & Securities and reportedly set the specific listing target for the second half of this year. The funds raised through this listing will be actively invested in vessels and container equipment to expand business operations in the U.S. East Coast and Asia regions and to develop new businesses.
Last year, SM Line stabilized its U.S. services by leveraging cooperation with 2M, the world's largest shipping alliance, and significantly improved its profitability through company-wide cost reduction efforts.
Combined with the external factor of freight rate recovery, the company succeeded in achieving the largest performance since its establishment. SM Line has set its operating profit target for this year at over 200 billion KRW.
While maintaining a profit trend this year, it plans to expand its business scope in the mid to long term by launching services to the U.S. West Coast and actively participating in the 'K-Alliance,' a coalition of Korean shipping companies in the Asian region, to strengthen its sales capabilities in the Asian market.
Park Ki-hoon, CEO of SM Line, said, “Through the IPO, we will establish a foundation for external growth while enhancing management transparency and becoming a trusted company. Amid the recent COVID-19 situation causing disruptions in logistics systems, the importance of national shipping companies is being newly highlighted, and I am confident that SM Line's growth will be a major cornerstone not only for domestic shippers but also for the reconstruction of Korea's shipping industry.”
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