Hyundai Rotem on Monday began official procedures for its listing on the main bourse, which will mark the largest-scale stock issuance since Samsung Life Insurance in 2010.
In a statement, the manufacturer of bullet trains and defense products said it notified the Financial Services Commission on the day of its plan to carry out an initial public offering.
Hyundai Rotem said it expected that its IPO, or stock issuance, on the Korea Exchange could reach 622.4 billion won ($565.8 million) as an upper ceiling when the IPO price per share is set at 23,000 won.
Its unit price is estimated to range between 17,000 won and 23,000 won, while the company is considering issuing 21.06 million shares.
The company has posted a robust business performance. Following 3.11 trillion won in sales and 175 billion won in operating profit last year, its sales and operating profit climbed 7.6 percent and 33.8 percent during the first half of 2013 on a year-on-year basis.
“We have continuously conducted R&D activities to develop new products such as magnetically levitated vehicles, applying new technology to all kinds of railway vehicles,” a company spokesman said.
He said it is also actively participating in variety of national R&D projects in the defense industry.
By Kim Yon-se (kys@heraldcor.com)
