[Run Again, Construction Korea] Accelerating Pedal, a Sustainable Engineering Solutions Company, to Be Listed on KOSPI Next Year

Enterprise Value Estimated Up to 10 Trillion KRW... Construction Stocks' Market Cap Rankings to Shift Significantly Upon Listing
Order Backlog Secures 4 Years of Work at 27 Trillion KRW... Focus on ESG-Based Eco-Friendly Construction Technology

The exterior view of the Hyundai Engineering headquarters building.

Hyundai Engineering is currently accelerating efforts to take another leap forward in growth. Recently, it passed the preliminary review for listing on the Korea Exchange's KOSPI market and submitted a securities registration statement to the Financial Services Commission. It plans to offer a total of 16 million shares in an IPO targeting a KOSPI listing in early next year. The desired price range per share is between 57,900 KRW and 75,700 KRW. The market is discussing Hyundai Engineering’s corporate value as high as 10 trillion KRW, positioning it as a major IPO, which is expected to cause a significant shift in the market capitalization rankings of construction stocks upon listing.

Hyundai Engineering is the 6th largest construction company in South Korea by construction capability. In this year’s evaluation by the Ministry of Land, Infrastructure and Transport, its construction performance was valued at 8.477 trillion KRW. Established in 1974, it specializes in the plant sector, building chemical and power production facilities, and the infrastructure sector, constructing social infrastructure. In 2014, it expanded into the housing sector by merging with Hyundai Emco. Currently, it provides solutions across all construction and engineering fields including ▲Plant (chemical, power, and energy) ▲Infrastructure & Industry ▲Architecture & Housing, and is also pursuing ▲Asset Management and ▲Green Environment & Energy (Green Environment & Energy) businesses related to carbon ZERO and hydrogen production. As of the end of last year, its sales composition was 45.5% from the plant and infrastructure sectors, 43.5% from architecture and housing, and 11% from asset management and other sectors.

Hyundai Engineering’s consolidated sales for the third quarter of this year amounted to 5.3907 trillion KRW, with an operating profit of 314.2 billion KRW. These figures represent increases of 2.6% and 54.6%, respectively, compared to the same period last year. As of the end of the third quarter, new orders totaled 10.0146 trillion KRW, up 44.6% from 6.9233 trillion KRW in the same period last year. The accumulated order backlog stands at 27.78 trillion KRW. Based on last year’s annual sales (7.1884 trillion KRW), this backlog secures about four years’ worth of work.

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, it secured projects including ▲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. Notably, in the urban maintenance sector (redevelopment, reconstruction, remodeling), it recorded orders exceeding 2 trillion KRW for the first time since its founding, demonstrating strong performance.

Hyundai Engineering’s strategy with this IPO is to establish a management system capable of sustainable growth. In January this year, it established a Sustainability Management Team to strengthen its ESG management system. In July, in response to the carbon-neutral era, it launched the G2E (Green Environment & Energy) division, which is pursuing projects such as hydrogen production using carbon, recycling of waste plastics, and small modular reactor projects. Additionally, to actively adopt and apply Fourth Industrial Revolution technologies, it expanded and reorganized its existing Technology Research Institute into a Smart Technology Center, accelerating the development of advanced construction technologies including ESG-based eco-friendly construction technology, AI design, unmanned robots, and modular housing. In August, through an extraordinary general meeting of shareholders, it strengthened its board functions by increasing the number of outside directors from one to four.

A Hyundai Engineering official emphasized, "We will further strengthen our competitiveness through this IPO 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.