Hyundai Motor Group's plans for a public offering of its robotics subsidiary, Boston Dynamics (BD), have become more complicated following SK Hynix's decision to halt the IPO review for its U.S. subsidiary, Solidigm. Concerns have arisen that the controversy over dual listings could hinder future business expansion and infringe on the interests of parent company shareholders.
According to industry sources on October 25, Hyundai Motor Group is exploring various funding options, including an IPO for BD, additional investments in affiliates, and attracting external investments while remaining private.
The market views BD's IPO as a likely scenario, as significant external capital is needed to alleviate the burden of self-funding for robotics development and mass production. The IPO is also linked to restructuring the circular ownership among Hyundai Mobis, Hyundai Motor, Kia, and Hyundai Mobis. One proposed strategy involves selling a portion of BD's shares post-IPO to enable Chairman Euisun Chung to acquire shares of Hyundai Mobis held by Kia.
Hyundai Motor Group is already in the process of increasing its control over BD. In July, SoftBank exercised a put option on its BD shares, triggering an obligation for existing shareholders to acquire additional shares. Once this process is completed, the group and Chairman Chung will secure 100% ownership of BD.
However, the recent Solidigm situation poses challenges for BD as well. On October 23, SK Hynix announced it would stop reviewing investment and IPO plans for Solidigm, citing market conditions. This decision has been interpreted as a response to shareholder backlash and concerns raised by financial authorities regarding dual listings.
If BD pursues an IPO in the future, the dual listing controversy is likely to resurface. Shareholders who invested in the parent company may express further opposition based on the Solidigm precedent. If opportunities for direct investment in the robotics business arise overseas, the attractiveness of indirect investments through Hyundai Motor Group affiliates may diminish, raising concerns about the dilution of domestic shareholder interests. As BD's business grows, these issues are expected to intensify.
Various timelines for the IPO have been suggested, with the most likely scenario being within the next two years. Hyundai Motor Group plans to establish a production system for 30,000 units annually of its humanoid robot, Atlas, by 2028, marking the start of full commercialization. Given the need for ongoing investments in production facilities, supply chains, and field verification, securing substantial funding before then is crucial.
If the IPO is delayed due to the Solidigm situation, the challenge of raising funds will remain. The group is expected to consider various strategies, including additional investments from affiliates, borrowing, and attracting external investments while remaining private. The key will be to maintain the growth rate of the robotics business while avoiding controversies over the dilution of existing investors' interests.
Other groups face similar challenges. LG Electronics' U.S. robotics subsidiary, Bear Robotics, is reportedly preparing for a pre-IPO. Doosan's U.S. hydrogen and fuel cell subsidiary, HyAxiom, has also begun the process of selecting an IPO underwriter. Strategies to secure future business growth funding through overseas markets may intersect with demands for shareholder protection.
* This article has been translated by AI.
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