The firm is offering around 32.9 million shares at 12,250 won to 14,000 won apiece, the firm said in a press conference.
The exact share price will be determined Wednesday through book building before receiving investor orders Nov. 4-5.
|Kim Yeon-chul, CEO of Hanwha Systems, speaks at a press conference in Yeouido, western Seoul, on Monday. (Hanwha Systems)|
NH Investment & Securities, Korea Investment & Securities and Citigroup Global Markets Korea Securities have been selected as joint sponsors of the offering.
Hanwha Systems will use the proceeds to establish a second data center and foster its personal air vehicles or air taxi business.
Ahead of its official IPO announcement Monday, Hanwha Systems has been beefing up its businesses successfully through a series of deals.
Last week, it signed a 60 billion-won deal with the state-run Agency for Defense Development to co-develop an auto-analysis system for military video data acquired via reconnaissance planes and satellites.
The latest deal follows a separate 80 billion-won contract inked in December 2018 with the Defense Acquisition Program Administration to provide a state-of-the-art military intelligence management system for the Army, Air Force and Navy.
It also signed a deal worth 30 billion won with the Philippines in August 2018 to supply a naval ship combat system that could upgrade 3000-ton frigates.
Boosted by the deals, it posted an operating profit of 44.8 billion won, which rose 45 percent on-year. It’s net profit jumped 193 percent to 41.2 billion won in the cited period.
Following the Kospi debut, its market cap is projected to rise above 1 trillion won, according to analysts.
Hanwha Systems’ majority shareholder is currently Hanwha’s aviation and defense unit Hanwha Aerospace, which owns 52.91 percent stake in the firm.
Established in 2000, Hanwha Systems manufactures high-tech defense systems and aircraft engines. The company merged with system integration affiliate Hanwha S&C in August 2018.
Its business is divided largely into two parts – defense and information technology.
“Through its Kospi debut, Hanwha Systems aims to become a leader in the global defense and information technology industries,” said Kim Yeon-chul, CEO of Hanwha Systems.
By Jung Min-kyung (email@example.com)