MNC Solution, a South Korean hydraulic equipment company aiming to enter the stock market this year, is expected to achieve a trillion-won valuation, marking it as a notable exit case for private equity investments.
MNC Solution originates from Doosan Group’s subsidiary Mottrol, formerly Doosan Mottrol BG. During Doosan’s restructuring four years ago, the highly valued hydraulic equipment company Mottrol was sold to a private equity firm. Following a corporate split, the company is now advancing towards listing as MNC Solution. One of the split entities has already been sold back to Doosan, recouping half of the initial investment. If MNC Solution achieves a valuation of over 1 trillion won upon listing, the private equity firm could realize a return of at least three times its investment in just four years.
Doosan, which sold Mottrol at a bargain under pressure from its main creditor, Korea Development Bank (KDB), may find this outcome hard to accept.
According to investment banking sources, MNC Solution is working with its sole underwriter, KB Securities, to complete the IPO process this year, targeting a valuation of at least 1.2 trillion won.
To adhere to this timeline, the company plans to submit its preliminary listing application to the Korea Exchange by early September. This initial review is the first step in assessing the company’s eligibility for the IPO.
MNC Solution garners attention as a successful example of a private equity exit. In 2020, under creditor control, Doosan Group sold key assets, including Doosan Solus, Doosan Infracore, and Mottrol, to improve its financial structure. The reluctant sale of Mottrol has now evolved into the promising MNC Solution.
