Hanwha Ocean remains bearish for 2 trading days ahead of capital increase

Hanwha Ocean Co.’s Geoje Shipyard [Courtesy of Hanwha Ocean]

Shares of South Korean shipping giant Hanwha Ocean Co. were down on Monday ahead of the company’s listing of a large number of new shares via a capital increase.

Hanwha Ocean was trading at 22,250 won ($17.08) on Monday at 9:05 a.m., down 1.77 percent from the previous day’s close.

The stock has been bearish for two consecutive trading days after plunging 16.73 percent on Friday.

The weakening shares are attributed to the oversupply concerns ahead of the additional listing of 89.48 million common shares issued through an equity right offering on Tuesday, accounting for 41 percent of Hanwha Ocean’s outstanding 216.73 million shares.

The issue price per share is 16,730 won, which is about 25 percent lower than the current stock price.

But the fall is starting to ease after the company announced that it won an order for a large ammonia carrier worth 163 billion won from a shipowner in Oceania.