[THE INVESTOR] Sampyo, South Korea’s No. 2 ready-mixed concrete manufacture, plans to get listed to recoup its investment on the acquisition of Tong Yang Cement last year, sources said on July 8.

“We are considering an initial public offering to improve our financial health in the long term as economic conditions in the construction industry are projected to deteriorate,” an official at Sampyo said. 

According to investment bank officials, Sampyo sent out a request for proposals to brokerage houses to hire underwriters for the IPO next week.

“It was to evaluate Sampyo’s corporate value and the amount of funds we can raise if we issue an IPO,” he said.

Sampyo logged 1.11 trillion won in sales (US$954 million) and 85.6 billion won in operating profit in 2015.

Currently, Chung Do-won, chairman of Sampyo, holds 81.9 percent stake in the company and his eldest son Dae-hyun is the second-largest shareholder with 14.07 percent shares. 

Chairman Chung is the father in law of Hyundai Motor vice chairman Chung Eui-sun.

The company plans to use the funds to repay its debt worth some 200 billion incurred when it bought Tong Yang Cement with a private equity arm of state-run Korea Development Bank for 794.3 billion won last year. The company’s debt-to-equity ratio has increased by sixfold due to the transaction.

By Park Han-na (hnpark@heraldcorp.com)