HD Hyundai has alleviated concerns about duplicate listings by withdrawing its plan to list HD Hyundai XiteSolution, an intermediate holding company. HD Hyundai decided to acquire the remaining equity held by KDB Investment, a financial investor (FI) in XiteSolution.
During a corporate briefing announcing its recent second-quarter performance, HD Hyundai stated, "In light of the withdrawal of the XiteSolution listing plan, we have decided to acquire the entire equity held by KDB Investment for 544.1 billion won," adding, "After HD Hyundai Construction Equipment absorbs HD Hyundai Infracore in January 2026, XiteSolution will continue to serve as an intermediate holding company, and the industrial vehicle business will be maintained within XiteSolution even after the merger."
HD Hyundai plans to finance the acquisition of XiteSolution by combining some of the cash it holds with external borrowings. The company also noted, "We expect dividend revenue to increase due to the strong performance of our subsidiaries."
KDB Investment holds 19.78% equity in XiteSolution. Initially, KDB Investment invested in the convertible bonds (CB) issued by XiteSolution in anticipation of the company's initial public offering (IPO). KDB Investment exercised conversion rights on some of these bonds to secure 19.78% equity in XiteSolution.
Until two years ago, HD Hyundai maintained its position to list XiteSolution. However, with the parent company HD Hyundai and the subsidiaries HD Hyundai Construction Equipment and HD Hyundai Infracore all already listed, there were shareholder concerns regarding XiteSolution entering the stock market as well. Moreover, as the government has recently shown moves to regulate duplicate listings, HD Hyundai decided to withdraw its listing plan for XiteSolution.
The securities industry has provided a positive assessment. Han Young-su, head of team at Samsung Securities, analyzed, "This decision alleviates the group's burden of promoting the listing of the intermediate holding company, XiteSolution," adding, "It is positively evaluated in that it can avoid the duplicate listing issues that the market has pointed out.