HD Hyundai Marine Solution CEO Lee Ki-dong speaks during a press conference at HD Hyundai Global R&D Center in Seongnam, Gyeonggi Province, Tuesday. Courtesy of HD Hyundai
SEONGNAM, Gyeonggi Province — HD Hyundai Marine Solution (HMS) will go public in May in order to provide better aftermarket services for vessels worldwide and speed digital transformation in the global shipbuilding industry, the company said Tuesday.
Its market cap is estimated to surpass 3.2 trillion won ($2.4 billion), after its planned listing on the benchmark KOSPI.
With the initial public offering, the HD Hyundai subsidiary is expected to earn around 323 billion won, which can then be used to purchase warehouses here and overseas, hire more IT experts and acquire companies that can maintain and repair ships and components.
The seven-year-old company, which was spun off from HD Hyundai Heavy Industries in November 2016, also aims to expand its global presence to provide its global clients with services throughout the entire lifecycle of their ships.
It already runs subsidiaries in the Netherlands, the U.S., Singapore and the United Arab Emirates and has offices in Germany, China, Japan, Taiwan, and Panama, to cope with the soaring global demand for aftermarket services for ships.
“Despite the COVID-19 pandemic, geopolitical conflicts and macroeconomic uncertainties, our company has grown continuously through the expansion of our global networks,” HD HMS CEO Lee Ki-dong said in a press conference.
The company’s revenue jumped to 1.4 trillion won in 2023 from 240 billion won in 2017. It has also shown a double-digit operating margin every year, attracting large-scale investment in 2021 from KKR, one of the world’s largest private equity firms, which became the second-largest shareholder of the Korean company.
“We will grow into the world’s leading company that can discover infinite potential in the ocean,” Lee added.
In addition to its lucrative aftermarket service business, HD HMS has retrofitted vessels to make them more eco-friendly, in line with enhanced global environmental regulations. It has also developed systems for the autonomous control of ships.
In particular, the company has pushed ahead with the commercialization of its Oceanwise service, which can reduce carbon emissions with artificial intelligence that can predict the amount of emissions and suggest the optimal route.
“The recently launched Oceanwise service will be a turning point in the market trend,” Lee said.
An HD Hyundai Marine Solution official introduces the company’s Digital Insight Center to reporters at HD Hyundai Global R&D Center in Seongnam, Gyeonggi Province, Tuesday. Courtesy of HD Hyundai
During the press conference, HD HMS also demonstrated its competitiveness in digital transformation by showing the Digital Insight Center, which enables real-time monitoring of more than 430 ships around the world, which are equipped with the company’s smartship solutions.
“Unlike the cyclical shipbuilding industry, our business models are less vulnerable to external factors,” the CEO said. “We are the only company that can provide one-stop services to global customers.”
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