The company, majority owned by DN Automotive, is expected to debut on the Korea Exchange by the end of this year.

DN Solutions, the world’s third-largest machine tool maker, has kicked off the process of going public on the Korea Exchange, in an initial public offering valued at around 3 trillion to 4 trillion won ($2.2 billion to 2.9 billion), according to The Korea Economic Daily.

The South Korean machine tool company, formerly Doosan Machinery Tools, has recently hired Samsung Securities Co., Mirae Asset Securities Co. and UBS as its IPO lead managers. Korea Investment & Securities Co. and Bank of America joined the list of the bookrunners.

Details on the timeframe and the portions of institutional and retail investors of the offer will be determined based on the conditions of the industry and stock market.

In 2022, DN Automotive, a South Korean automotive parts manufacturer, acquired 100% of DN Solutions for 2.12 trillion won from MBK Partners. It financed the purchase with 900 billion won in equity capital, 1 trillion won in acquisition financing and 220 billion won funding from Korea Investment Private Equity and other sponsors.

The sources said that DN Solutions will likely debut on the Korea Exchange by the end of this year to fulfil its parent company’s promise to the financial investors that the IPO will be completed by January next year to facilitate their exit. Earlier this month, DN Solutions raised 83.3 billion won in rights offering from the state-owned Korea Development Bank and Seoul-based STIC Investments Inc., according to its regulatory filing. The rights issues cut its parent company’s stake to 90.32%.

DN Solutions boasts a diverse portfolio of about 500 types of machine tools, ranging from turning centers to machining centers and boring mills. They are supplied to automotive, aviation, medical and semi-conductor companies. It derives the majority of its earnings from exports.

In 2023, its operating profit jumped 19% to 391.4 billion won from the previous year’s 328.1 billion won. Sales remained steady at 1.8 trillion won. Its earnings before interest, tax, depreciation and amortization climbed 40% to 241.7 billion won as of the end of June 2023, compared to the year-earlier period.

In January, DN Solutions announced that it had purchased a stake in German software developer ModuleWorks for an undisclosed sum in a strategic investment.

For more information contact Puma Machine Tools on TEL: 011 976 8600 or visit www.pumamachinetools.co.za