Specialized Logistics Market Expected to Grow 10% Annually Until 2027
IPO Funds to Be Invested in Parcel Infrastructure and Smart Logistics Advancement
"Expanding High Value-Added Services... Aiming to Become the Top Growth Stock in the Capital Market"
Kang Byunggu, CEO of Lotte Global Logistics, stated on the 21st, "We will proactively respond to future key industries such as hydrogen, ammonia, and secondary batteries, and take the lead in the specialized logistics market."
Kang Byunggu, CEO of Lotte Global Logistics, is introducing the company at an initial public offering (IPO) press conference held on the morning of the 21st at the Conrad Hotel in Yeouido, Seoul. Photo by Noh Kyungjo
At an initial public offering (IPO) press conference held on the morning of the same day at the Conrad Hotel in Yeouido, Seoul, Kang said, "Based on a stable business structure driven by group synergies and our domestic and international network infrastructure, we will continue to strengthen differentiated customer service and specialized logistics capabilities even after listing."
He emphasized, "The specialized logistics market is expected to grow at a steep average annual rate of over 10% until 2027. In the secondary battery sector, we have secured logistics capabilities that cover the entire value chain, from raw material transportation to battery recycling and collection." He added, "In the hydrogen sector, we are working with group affiliates such as Lotte Fine Chemical and Lotte Chemical to develop business models linked to ammonia maritime transportation."
Lotte Global Logistics, which is preparing for a listing on the Korea Exchange (KOSPI), is a comprehensive logistics company launched in 2019 through the merger of Hyundai Logistics, founded in 1988, and Lotte Logistics, established in 1996. With 19 terminals nationwide and the largest 'Mega Hub Terminal' in central Asia, the company can process up to 3.1 million boxes per day. In the domestic logistics industry, it holds the second-largest market share after CJ Logistics.
Lotte Global Logistics plans to use the funds raised from this public offering to expand its parcel delivery infrastructure and advance its smart logistics systems. The company aims to establish itself as the top growth stock in the capital market.
Lotte Global Logistics will also be responsible for logistics operations in 'Lotte e-Grocery,' the group's online fresh market service currently under development. It will participate as a logistics partner in Lotte Shopping's artificial intelligence (AI) service 'Ocado.' The number of companies offering the 'Promise Delivery' service, which allows customers to receive goods at their preferred time, will increase from 28 this year to 178 by 2027. The company will also promote the 'Luggage Less' service, which helps travelers by handling their luggage.
Kang explained, "We are continuously expanding high value-added services (VAS) such as Promise Delivery. From 2021 to 2024, we achieved an operating profit growth rate about 20% higher than the industry average for similar companies, and both EBITDA and net profit growth rates are also above the industry average."
The company is also continuing to expand its overseas business. Lotte Global Logistics currently operates local subsidiaries in 11 countries worldwide. In particular, to strengthen its highly profitable battery logistics business, it is establishing a logistics hub in Eastern Europe centered on its Hungarian subsidiary. Last year, it established a new subsidiary in Mexico to target the North American market.
The total number of shares offered in the Lotte Global Logistics IPO is 14,944,322 shares, with the desired price range per share set at 11,500 to 13,500 won. Based on the upper end of the price band, the expected offering amount is 201.7 billion won. Institutional demand forecasting will take place from the 24th to the 30th, after which the final offering price will be determined, and subscriptions will be accepted on the 12th and 13th of next month. The lead underwriters are Korea Investment & Securities and Samsung Securities, with KB Securities as a co-underwriter.
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