Yongpyong Resort said Monday that it is seeking to raise 135.4 billion won ($118.8 million) by issuing 16.7 million common shares for an initial public offering.

In a regulatory filing, Korea’s third largest resort and hotel operator by sales said it will use the IPO proceeds to finance the construction of a condominium, apartments for Olympic athletes at the 2018 PyeongChang Winter Olympics and a budget hotel, as well as repay its debt to state-run Korea Development Bank.

The resort operator owes KDB 10 billion won, which was used for tourism development.

Retail investors will be able to subscribe about 20 percent of its stock offerings at around 8,000 won per share, while the rest will be offered to institutional investors through Yongpyong’s IPO underwriters -- Mirae Asset Daewoo Securities and Daishin Securities.

Institutional investors including Hanwha Investment & Securities and HMC Investment & Securities are expected to subscribe 5 percent of the shares, respectively.

The IPO will be issued May 17. This marks the first time for a local resort to go public in the stock market.

Yongpyong operates a ski resort, which will be used as a venue for the 2018 Winter Olympics. A foundation run by the Unification Church has around 50 percent stake in the resort company.

By Park Hyong-ki (hkp@heraldcorp.com)