이 기사는 2021년 03월 26일 08:06 thebell 에 표출된 기사입니다.

HCAS, which operates South Korea’s largest used-car retailer K Car, is looking to go public on the local stock exchange this year as the company has seen strong growth in sales and earnings in recent years.

The company is 100% owned by Hahn & Company. The private equity firm bought the offline division of SK Encar, later renamed HCAS, in 2018 in a deal reportedly worth about 200 billion won ($176.2 million).

The same year, HCAS closed a bolt-on acquisition of Joy Rent a Car – which late last year was merged into the company – and also launched K Car Capital, expanding its business to include car rental services and auto financing.

K Car’s revenue grew 60% from 742.8 billion won in 2018 to 1.18 trillion won in 2019, with operating profit nearly tripling to 29.2 billion won. Joy Rent a Car’s revenue also more than doubled to 54.5 billion won in the same period, while its operating profit turned to a loss of 66.9 billion won largely due to increased spending on new businesses.

Hahn & Co has hired NH Investment & Securities to lead HCAS’s listing, with a goal to take the company public by this year. The deal size is expected to exceed 100 billion won.

The initial public offering will likely involve a large stake sale by Hahn & Co, in addition to a fresh issue of shares. The deal would generate sizable returns for Hahn & Co given HCAS’s improved profitability and accelerated top-line growth.

HCAS’s market debut would mark the private equity firm’s first exit through an IPO on the local bourse. H-Line Shipping – another portfolio company of Hahn & Co – has been preparing for an IPO since 2018, though a highly cyclical performance has hamstrung the shipping company.

H-Line Shipping’s net income has been volatile over the past years, with 38.5 billion won in 2014, 86.3 billion won in 2015, 54.7 billion won in 2016, 166.6 billion won in 2017, 85.3 billion won 2018 and 128.3 billion won 2019.

Hahn & Co previously exited one of its early investments through an overseas listing. Cowell e Holdings, in which the firm acquired a 50% stake for 90 billion won in 2011, made its debut on the Hong Kong stock exchange in 2015 at a $560 million valuation.

Cowell e Holdings, a supplier of smartphone camera modules, saw its revenue grow more than fivefold between 2010 and 2014 after increasing spending on capital expenditure and expanding its customer base. With the exit through the company’s Hong Kong IPO, Hahn & Co reportedly generated returns of nearly five times invested capital. (Reporting by Si-eun Park)