Hanwha Energy, which is 100% owned by the Hanwha Group owner family, has begun preparations for an initial public offering (IPO). Hanwha Energy is considered a key subsidiary in the succession of the Hanwha Group.
According to the investment banking (IB) industry on the 11th, Hanwha Energy has recently distributed requests for proposals (RFP) to several securities firms and has commenced its IPO preparations.
Hanwha Energy is owned by the third generation, with Kim Dong-kwan, vice chairman of the Hanwha Group, holding 50% equity, Kim Dong-won, president of Hanwha Life, holding 25%, and Kim Dong-sun, senior vice president of Hanwha Galleria and Hanwha Hotels & Resorts, holding 25%. Hanwha Energy is the second-largest shareholder with a 22.16% equity stake in Hanwha.
Although Hanwha has not met the requirements to become a holding company, it holds equity stakes in key subsidiaries such as Hanwha Aerospace (33.95%), Hanwha Life (43.24%), Hanwha Galleria (36.31%), Hanwha Solutions (36.31%), and Hanwha Hotels & Resorts (49.8%).
Combining the 22.65% equity held by Kim Seung-yeon, chairman of Hanwha Group, with the equity held by Hanwha Energy (22.16%) allows for stable management rights, which is considered key to the succession.
Hanwha Energy was established as a subsidiary of Hanwha Petrochemical (currently Hanwha Solutions) in 2007 when it spun off the district energy business. It operates combined heat and power plants at the Yeosu National Industrial Complex and Gunsan National Industrial Complex.
At the Hanwha Group, Kim Dong-kwan is responsible for defense, shipbuilding, and energy, Kim Dong-won manages finance, and Kim Dong-sun oversees subsidiaries related to distribution, robotics, and semiconductor equipment.