Hanwha Energy's IPO 'Start'... Is the 3rd Generation Succession Blueprint Being Drawn?

Initiating the Selection Process for Lead Underwriter

Hanwha Energy, wholly owned by the three third-generation brothers of Hanwha Group, has initiated the process for its public listing. As a key company in the group's succession plan, attention is focused on whether the succession efforts will accelerate following the listing.

According to industry sources on the 11th, Hanwha Energy recently distributed a Request for Proposal (RFP) to several major domestic securities firms. It is expected that these leading securities companies will submit their bids soon, marking the start of a competitive process to select the lead underwriter.

Hanwha Energy originated from Yeosu Combined Heat and Power Plant, established in 2007 when Hanwha Petrochemical (now Hanwha Solutions) spun off its district energy business division.

The company is a private firm 100% owned by the three third-generation heirs: Kim Dong-kwan, Vice Chairman of Hanwha Group (50%), Kim Dong-won, President of Hanwha Life Insurance (25%), and Kim Dong-sun, Vice President and Head of Future Vision at Hanwha Galleria and Hanwha Hotels & Resorts (25%).

Notably, Hanwha Energy holds a 22.16% stake in Hanwha Corporation, which is comparable to the 22.65% stake held by Kim Seung-youn, Chairman of Hanwha Group and the largest shareholder.

In the business community, it is anticipated that if Hanwha Energy successfully raises substantial funds through its IPO, it could enjoy various benefits such as increased corporate value and resources for additional share acquisitions.