This article was published on March 25, 2025, at 5:27 p.m. on the ChosunBiz MoneyMove site.
As Hanwha Energy has quickly selected its listing lead underwriter, DAISHIN SECURITIES has drawn attention by being included in the lead underwriter group. Although DAISHIN SECURITIES is not among the top-tier in initial public offering (IPO) underwriting performance, it has never been part of the underwriting group for previous listings from Hanwha Group affiliates. Industry insiders believe that this selection signifies the success of DAISHIN SECURITIES' sustained efforts to cultivate a relationship with Hanwha Group.
According to the investment banking (IB) industry on the 25th, Hanwha Energy has recently selected Korea Investment & Securities, NH Investment & Securities, and DAISHIN SECURITIES as lead underwriters, and KB Securities and Shinhan Investment & Securities as co-underwriters.
An industry source noted, “The competition among securities firms to secure the underwriting for Hanwha Energy, which is key to management succession and has a trillion-won IPO, was intense,” adding, “The proposal preparation period was only a week, and I understand that most firms presented a corporate value of 4 trillion to 5 trillion won.”
Hanwha Energy is a company in which the founder's three sons hold all equity. Kim Dong-kwan, vice chairman and the eldest son of Chairman Kim Seung-youn, holds 50% of the equity, while the second son, Kim Dong-won, president of Hanwha Life, and the youngest son, Kim Dong-seon, vice president of Hanwha Hotel & Resort, each hold 25%. The business community speculates that Hanwha Energy might increase its stake in Hanwha Co., Ltd. before merging with Hanwha Co., Ltd., allowing the three brothers to naturally secure shares in the holding company.
Korea Investment & Securities and NH Investment & Securities, which are part of the lead underwriter group this time, have a history of serving as IPO underwriters for Hanwha Group affiliates in the past. Korea Investment & Securities served as the lead underwriter during the listing of Hanwha Impact, and NH Investment & Securities managed the re-listing of Hanwha Galleria and Hanwha Industrial Solutions.
In contrast, DAISHIN SECURITIES was the only one among the three lead underwriters selected for the IPO of Hanwha Group. This contrasts with Mirae Asset Securities and Samsung Securities, which are contending for top-tier positions but did not even receive the request for proposal (RFP).
A representative from DAISHIN SECURITIES stated, “We have consistently worked hard to build a track record with Hanwha Group.” In terms of equity capital markets (ECM), DAISHIN SECURITIES participated as an underwriter for the Hanwha System IPO in 2019, followed by leading the rights offerings for Hanwha System, Hanwha Solutions, and Hanwha Ocean in 2021 and 2023, respectively. Last year, it also participated as an underwriter for Hanwha Solutions' new capital securities.
DAISHIN SECURITIES has continuously engaged in deals with Hanwha Group in the DCM sector as well. In 2023, it served as the lead underwriter for the issuance of corporate bonds for Hanwha, Hanwha Aerospace, and Hanwha Solutions, and last year, it underwrote corporate bonds for Hanwha Energy, Hanwha Hotel & Resort, Hanwha Ocean, and Hanwha Aerospace. This year, it has again been the leading underwriter for corporate bond issuances for Hanwha Energy and Hanwha, and Hanwha Solutions.
DAISHIN SECURITIES has been strengthening its DCM sector by hiring Lee Hyun-kyu, the former IB2 division head of Korea Investment & Securities, as the executive director of the IB sector last year. As a result, it has enhanced its partnership with Hanwha Group.
According to the IB industry, Hanwha Group and DAISHIN SECURITIES are known to have a close relationship between the owners. It is reported that Kim Dong-kwan, vice chairman (born in 1983), and Yang Hong-seok, vice chairman (born in 1981), maintain a friendly relationship.