Hanju Light Metal Submits Securities Report for KOSDAQ Listing

[Asia Economy Reporter Jang Hyowon] Hanju Light Metal, a manufacturer of ultra-lightweight aluminum parts (co-CEOs Jeong Samsun and Lee Yongjin), announced on the 21st that it has submitted a securities registration statement to the Financial Supervisory Service and officially begun the public offering process for listing on KOSDAQ.

Hanju Light Metal plans to offer 6.5 million shares in this IPO. The expected offering price is 2,700 to 3,100 KRW per share, with a total offering amount ranging from 17.6 billion to 20.2 billion KRW. The demand forecast is scheduled for December 12-13, followed by the general subscription on December 19-20, aiming to complete the listing by the end of December. The joint lead managers are Hyundai Motor Securities and Mirae Asset Securities.

Founded in 1987, Hanju Light Metal is a vehicle parts manufacturer that has supplied lightweight parts to major domestic and international automakers for the past 35 years based on advanced aluminum casting technology. It has particularly distinguished itself in the automotive industry, where lightweighting is essential for improving fuel efficiency, reducing exhaust emissions, and shortening braking distances.

As of the third quarter of this year, automotive lightweight parts accounted for 87.8% of Hanju Light Metal’s sales. The company’s parts such as knuckles/carriers, subframes, and control arms are compatible with both electric vehicles and internal combustion engine vehicles, establishing a stable portfolio not only for the present but also for the future of automotive lightweighting.

Hanju Light Metal has developed various casting methods to overcome productivity and durability issues associated with conventional aluminum casting techniques such as gravity casting, low-pressure casting, and high-pressure casting. Through this, it has enhanced the lightweight and functional aspects of automobiles, notably presenting a solution for ultra-lightweighting through its patented electromagnetic stirring high-pressure casting technology that manufactures high-strength and high-toughness products.

The electromagnetic stirring high-pressure casting method is applicable not only to the automotive industry but also to IT industries requiring high thermal conductivity, such as 5G relay heat sinks and smartphone aluminum substrates, providing future growth potential. Hanju Light Metal is the only domestic company capable of offering customized total aluminum solutions through such diverse specialized casting methods.

Additionally, Hanju Light Metal is developing and mass-producing technology that enables the production of products previously assembled by welding multiple parts (such as subframes, rear side members, and battery cases) in a single large-scale/hollow low-pressure casting process, aligning with the global casting trend toward larger, integrated, and simplified components.

Based on these various core competencies, Hanju Light Metal has secured numerous global major automakers as clients. Among the global top 10 automakers, it counts domestic giants such as Hyundai Kia Motors and Renault Korea, as well as overseas companies including GM, Ford, and Nissan as its customers.

Sales have also shown continuous growth. As of the third quarter of 2022, cumulative sales reached 175.1 billion KRW with an operating profit of 7.8 billion KRW, and full-year sales are expected to surpass last year’s 189 billion KRW. Leveraging this external growth, the company is expanding its high value-added business share through the development and production of automotive lightweight parts, continuously improving profitability.

Hanju Light Metal plans to use the proceeds from the public offering for new business development and overseas market expansion. It aims to develop innovative products incorporating differentiated technologies to replace existing products and expand application areas, as well as diversify its business using large-scale/hollow low-pressure casting methods and its patented electromagnetic stirring high-pressure casting technology. Furthermore, as the first domestic aluminum parts company to establish a local production base in Slovakia, Europe, it plans to respond to Hyundai Kia Motors’ European plants, pursue orders from European local automakers, and expand orders from global companies in various fields, including supplying key parts for secondary batteries.

Lee Yongjin, CEO of Hanju Light Metal, stated, “Hanju Light Metal has led ultra-lightweighting in the domestic automotive market based on 35 years of accumulated specialized casting technology. After listing, we will focus on securing overseas local production bases and expanding global customers to become the next-generation leader in the global mobility ultra-lightweighting market.”

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