HD Hyundai Marine Solutions is entering the full-scale listing process.
HD Hyundai Marine Solutions, a comprehensive solution company in the shipbuilding and marine industry, announced on the 26th that it submitted a securities registration statement to the Financial Services Commission on the 25th and plans to list on the KOSPI market within May.
HD Hyundai Marine Solutions was established as an independent corporation in 2016 to respond to the demand for aftermarket (AM) services for ships. In line with the global eco-friendly trend such as ship decarbonization and digitalization, it has expanded its business areas from the existing ship AM business to eco-friendly retrofitting and digital solutions.
In its first year after launching in 2017, it recorded sales of 240.3 billion KRW and showed a high growth rate of 35% annually on average, reaching sales of 1.4305 trillion KRW last year. This is about a sixfold increase compared to 2017. In particular, it recorded double-digit operating profit margins every year, achieving 14.1% in 2023 as well.
Through this listing, HD Hyundai Marine Solutions will offer 8.9 million shares to the public. HD Hyundai Marine Solutions will issue 4.45 million new shares (50%), and KKR (private equity fund), the second-largest shareholder, will sell 4.45 million shares out of the 15.2 million shares it holds as existing shares. The largest shareholder, HD Hyundai, holding 24.8 million shares, will not sell any existing shares.
The desired public offering price range per share of HD Hyundai Marine Solutions is 73,300 to 83,400 KRW, with a total expected public offering amount of 652.4 billion to 742.3 billion KRW. Based on the desired offering price, the expected market capitalization is 3.2582 trillion to 3.7071 trillion KRW.
The demand forecast will be conducted from April 16 to 22, and the general subscription will take place on the 25th and 26th of the same month. The lead underwriters for the listing are KB Securities, UBS, and JP Morgan, with Shinhan Investment Corp. and Hana Securities as joint underwriters. Samsung Securities and Daishin Securities are also included in the underwriting group.
HD Hyundai Marine Solutions plans to use the funds raised through this public offering for mid- to long-term growth, such as strengthening its global network and research and development. Through this, it aims to solidify its brand position in the ship AM market, expand capabilities in the eco-friendly retrofitting business, and advance the ship digital business.
Lee Ki-dong, CEO of HD Hyundai Marine Solutions, said, "We have established a new business model in the AM market within the shipbuilding and marine industry, securing continuous growth and profitability. Through the IPO, we will grow into a leading comprehensive marine solution company across all business areas including AM, eco-friendly, and digital."
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