SM Shipping submits IPO securities registration statement... aiming for KOSDAQ listing in November

[Asia Economy Reporter Lim Jeongsu] SM Line announced on the 7th that it submitted a securities registration statement on the 6th for listing on KOSDAQ and has begun full-scale preparations for its initial public offering (IPO).

SM Line, a shipping subsidiary of SM Group (Chairman Woo Oh-hyun), plans to offer 33,844,220 shares out of the total 84,610,550 shares to be listed. The expected price range for the offering is 18,000 to 25,000 KRW per share. Institutional investors will participate in a demand forecast over two days, from the 1st to the 2nd of next month, to finalize the offering price, followed by a subscription period for general investors from the 4th to the 5th of the same month. NH Investment & Securities is the lead underwriter for the listing.

As one of the two major domestic deep-sea shipping companies, SM Line has maintained an average annual sales growth rate exceeding 40% since its establishment in 2016. In the second quarter of 2021, its sales and operating profit increased by 16.7% and 29.2%, respectively, compared to the previous quarter, setting a record high.

SM Line’s container shipping services in the shipping division consist of four routes on the U.S. West Coast calling at Long Beach, Seattle, Vancouver, and Portland, and nine Asia routes calling at Shanghai, Haiphong, Ho Chi Minh, and Bangkok, among others. The company operates a total of 18 vessels and has recently deployed temporary ships to actively help alleviate logistics difficulties faced by domestic export companies.

SM Line is also pursuing differentiated services and exploring niche markets. In 2019, it launched container services to the U.S. West Coast Portland port, which had been discontinued by other shipping companies since 2016. Additionally, it continues to expand its intermodal services, transporting containers from terminals via rail to various inland locations in the U.S., and is actively considering opening East Coast U.S. routes calling at New York and Savannah in the future.

SM Line plans to use the funds raised through the listing to expand its operating assets such as vessels and container boxes and to extend its routes, thereby further enhancing its global competitiveness.

Park Ki-hoon, head of SM Line’s shipping division, expressed his ambition, saying, "After listing, we will focus on acquiring new assets and expanding our service network strategy to become a solid global container shipping company that remains resilient regardless of any external environmental changes."