Hydrogen tank maker Iljin Hysolus to make Kospi debut Sept. 3

South Korea’s leading hydrogen tank maker Iljin Hysolus Co. will be listed on Kospi on Sept. 3, according to the company’s IPO briefing session held online on Aug. 19.

Iljin Hysolus will confirm the offering price on Aug. 23 based on the demand forecast among the institutional investors over Aug. 19-20. The subscription period for retail investors will be Aug. 24-25.

The company’s proposed price band for its IPO shares is between 25,700 won ($21.84) and 34,300 won ($29.14). The hydrogen tank maker will raise 279.9-373.6 billion won ($237.8-317.4 million) depending on the final offering price, with its market cap standing between 933.2 billion won ($792.8 million) and 1.25 trillion won ($1.06 billion).

The company’s CEO Ahn Hong-sang said that the newly raised funds will be used for the expansion of hydrogen fuel tank manufacturing facilities and R&D efforts. Analysts estimate that the number of shares available for trading immediately after the IPO on Sept. 3 will be 8,715,192 shares, or 24% of the total outstanding volume.  

Established in 1999 and later acquired by Injin Diamond Co. in 2012, Iljin Hysolus is South Korea’s only mass-producer of hydrogen tube trailers. Iljin Diamond currently owns an 87% stake in the company. Sources report that the parent company will sell 3,631,330 shares in the IPO process to secure 125 billion won ($106.2 million) in cash at maximum.

Iljin Hysolus is largely known as the exclusive supplier of hydrogen tubes for Hyundai Motor Co.’s hydrogen vehicle Nexo, and has recently entered the hydrogen storage systems market by receiving global accreditation for its Type 4 hydrogen tube trailers. The company in June also signed a deal with Samsung Heavy Industries Co. to jointly develop hydrogen fuel cell-powered ships.

“The demands for hydrogen tanks to be used by commercial vehicles and ships are on the rise. The hydrogen tube trailer market is also expanding fast. We also expect that the air mobility will industry will use more hydrogen tanks after 2025,” said Iljin Hysolus CEO.

Iljin Hysolus’ revenue last year was 113.5 billion won ($96.4 million), growing by 23.5% from 2019. It made an operating profit of 15 billion won ($12.7 million) in 2020.

Write to Ye-jin Jun at ace@hankyung.com
Daniel Cho edited this article.