[THE INVESTOR] Samyang Packaging, a Korean plastic container manufacturer, is pushing for an initial public offering next year in a bid to improve its financial status by raising funds.

The company is preparing to go public by sending out a request for proposal letters to major securities firms to hire a lead manager for the offer.

Samyang Packaging, which was established in 2014 by being spun-off from Samyang Sa, has facilities that produce PET plastic bottles and recycle them.

As of end of 2015, Samyang Sa holds a 51 percent stake in the packaging firm.

The IPO plan comes as the company’s debt ratio skyrocketed to 148.84 percent from 14.38 percent after Samyang Packaging acquired Hyosung’s plastic container unit Asepsis Global last year.

To lower interest cost, the packaging firm refinanced its debt worth 250 billion won (US$215.8 million) earlier this year but it still has to spend an annual interest cost of some 6 billion won.

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