Hyundai Engineering Passes Preliminary Listing Review, Aiming for KOSPI Entry in First Half of Next Year

Passed Preliminary Listing Review Three Months After Submission on September 30
Balanced Business Portfolio Including Plant, Infrastructure, Architecture & Housing
Strengthening ESG Management, Discovering and Promoting Eco-Friendly New Businesses, Establishing Smart Technology Center

The appearance of the Hyundai Engineering office building.

Hyundai Engineering announced on the 6th that it has passed the preliminary review for listing on the Korea Exchange's KOSPI market.

The company plans to submit a securities registration statement and proceed with the full public offering process after coordinating the schedule and details with the underwriting group. The underwriting group includes Mirae Asset Securities, KB Securities, and Goldman Sachs Securities.

Hyundai Engineering provides solutions across all construction and engineering sectors, including △plants (chemical, power, and energy), △infrastructure and industry, and △architecture and housing. It is also advancing △asset management business and △Green Environment & Energy business related to carbon ZERO and hydrogen production.

As of the end of 2020, the sales composition was 45.5% combined for the plant and infrastructure sectors, 43.5% for the architecture and housing sector, and 11% for asset management and other sectors.

On a consolidated basis for the third quarter of this year, Hyundai Engineering recorded sales of KRW 5.3907 trillion and operating profit of KRW 314.2 billion. These figures represent improvements of 2.6% and 54.6%, respectively, compared to the same period last year.

As of the end of the third quarter this year, new orders amounted to KRW 10.0146 trillion, a 44.6% increase compared to KRW 6.9233 trillion in the same period last year. Accordingly, the order backlog stands at KRW 27.78 trillion, securing about four years' worth of work based on last year's annual sales (KRW 7.1884 trillion).

Major orders this year include overseas projects such as ▲UrbanX renewable diesel FEED in the United States ▲PKN Olefin plant expansion in Poland ▲Rayong diesel Euro 5 refinery in Thailand ▲Orenburg gas processing facility in Russia ▲Jafurah gas processing facility in Saudi Arabia ▲petrochemical complex project in Indonesia. Domestically, Hyundai Engineering has distinguished itself by recording orders exceeding KRW 2 trillion for the first time since its founding in the urban redevelopment sector (redevelopment, reconstruction, remodeling). Major domestic orders include ▲Gwangmyeong Cheolsan Hanshin Apartment remodeling ▲Garak Ssangyong 1st Apartment remodeling ▲Changwon Hoeweon 2nd District redevelopment ▲Busan Jwacheon Beomil 2nd District urban environment maintenance project ▲Namyangju Deokso 5A District urban environment maintenance project.

Hyundai Engineering's strategy with this IPO is to establish a management system capable of sustainable growth.

To this end, in January this year, the company established a Sustainability Management Team to strengthen its ESG management system, and in July, in response to the carbon-neutral era, it also established the G2E (Green Environment & Energy) division, which is promoting hydrogen production using carbon, waste plastic recycling, and small modular reactor projects. Additionally, to actively introduce and apply Fourth Industrial Revolution technologies, the existing Technology Research Institute was expanded and reorganized into a Smart Technology Center, accelerating the development of advanced construction technologies such as ESG-based eco-friendly construction technology, AI design, unmanned robots, and modular housing.

In August, through an extraordinary general meeting of shareholders, Hyundai Engineering strengthened its board functions by appointing three additional outside directors, increasing from one to four outside directors.

A Hyundai Engineering official emphasized, “With this IPO as an opportunity, we will further strengthen our competitiveness and enhance our status as a partner providing sustainable engineering solutions both domestically and internationally.”

This content was produced with the assistance of AI translation services.