HD Hyundai Marine Solution considered one of the largest IPOs in the first half of 2024, has entered into full-fledged listing procedures.
HD Hyundai Marine Solution, a total solution service provider in the shipbuilding and offshore industry within HD Hyundai group, announced on Mar. 25 that it will submit a securities report to the Financial Services Commission and will complete its initial public offering (IPO) on the Korea Stock Exchange (KOSPI) in May 2024.
HD Hyundai Marine Solution will offer 8.9 million shares via the IPO. The company will issue 4.45 million new shares (50%). KKR (private equity firm), the second-largest shareholder, will sell 4.45 million of the 15.2 million shares it holds. HD Hyundai, its largest shareholder with 24.8 million shares, will not sell any existing shares.
HD Hyundai Marine has set the price band between 73,300 won and 83,400 won. The company aims to raise 652.4 billion ($488.28m)-742.3 billion won ($555.57m) through the listing.
Based on the expected offering price, the anticipated market capitalization ranges from 3.258 trillion won ($2.437 billion) to 3.7071 trillion won ($2.772 billion).
The solution provider will hold its book building from Apr. 16 to 22, with the general subscriptions from Apr. 25 to 26. KB Securities, UBS Group AG, and JPMorgan Chase & Co are the lead managers for the listing, with Shinhan Securities and Hana Securities as joint bookrunners. Underwriters include Samsung Securities and DAISHIN Securities.
Established in 2016 as an independent corporation to address the growing demand for aftermarket (AM) services for ships, HD Hyundai Marine Solution has expanded its business scope to include eco-friendly retrofitting and digital solutions. Starting with revenue of 240.3 billion won (about $179.56 million) in its first year of operation in 2017, the company has achieved significant growth, recording revenue of 1.4305 trillion won ($1.069) last year, a sixfold increase compared to 2017. HD Hyundai Marine Solution has consistently posted double-digit operating margins, including 14.1% in 2023.
The proceeds from the IPO will be utilized for mid-to-long-term growth, including strengthening global networks and research and development. This initiative will strengthen the company’s brand presence in the ship AM market, enhance its expertise in eco-friendly retrofitting, and propel advancements in digital solutions for ships.
Lee Ki-dong, CEO of HD Hyundai Marine Solution, stated, “HD Hyundai Marine Solution has achieved consistent growth and profitability by pioneering a new business model in the shipbuilding and offshore industry. With the IPO, we aim to further expand our presence and become a leading comprehensive marine solution provider, excelling in all sectors such as AM, eco-friendly initiatives, and digital solutions.”
