HD Hyundai Robotics is formally starting the initial public offering (IPO) process. Funds raised through the listing are expected to be used to expand the group's robot and artificial intelligence (AI) manufacturing infrastructure.
On Dec. 2, according to the investment banking (IB) industry, HD Hyundai Robotics distributed a request for proposal (RFP) for lead-manager selection to nine major domestic and overseas securities firms. The company aims to finalize the lead manager as early as within the year and begin due diligence with a goal of filing for a preliminary review early next year.
HD Hyundai Robotics is HD Hyundai's robotics affiliate, with industrial robots and automation solutions as its core businesses. It was established in May 2020 through a physical split-off from HD Hyundai. HD Hyundai Robotics has maintained the top spot in revenue in Korea's manufacturing robot market for more than 40 years. As of the end of last year, revenue was about 215 billion won and operating profit was 268 million won.
HD Hyundai Robotics plans to launch shipyard site–tailored robot automation technology next year. As capital expenditures increase across HD Hyundai affiliates such as shipbuilding, heavy equipment, and power equipment, demand for robot- and AI-based manufacturing automation solutions is rising at the same time.
An HD Hyundai Robotics official said, "It is true that we are considering pursuing an IPO," and noted, "We plan to put the protection of the parent company's shareholder value first and communicate actively with the market."