Innovation
Hyosung accelerates asset sales, IPOs to spur growth
October 5, 2020
Korean-based Hyosung Group is accelerating efforts to sell assets and list major subsidiaries on the Korean stock market and secure funds to invest in hydrogen and data sectors, its new growth drivers.
The group has chosen KB Securities Co. and Daishin Securities Co. to lead the initial public offering of its information technology unit, Hyosung TNS Inc, which manufacturers ATMs, according to a Korean Investors report.
Hyosung TNS, which is 54.01% owned by Hyosung Corp. the group's holding company, and has a record operating profit of 96.5 billion won ($83 million) in 2019 due to strong ATM sales overseas. Hyosung Group is pushing hard for an IPO of Hyosung TNS, but as of yet no IPO date has been released.
The expected IPO is part of Hyosung's funding plans to finance new projects under a group initiative and foster growing businesses such as carbon fibers, hydrogen and data centers.
As part of an effort to abide by the government regulation that bans a non-financial holding company from owning a financial unit, Hyosung Group has to sell Hyosung Capital by the end of 2020.
Industry analysts predict the group could raise as much as 600 billion won through asset sales and additional capital from major subsidiaries' IPOs, all of which will be used for investment in growth areas.
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