Many advisors including domestic and foreign investment banks are approaching financial and strategic investors to find out whether to participate in car-sharing platform Green Car’s fundraising deal, industry sources said.

Advisors will be competing for a limited group of investors, as Lotte Rental tries to speed up a fundraising effort for its subsidiary Green Car ahead of its initial public offering (IPO). Lotte Rental, South Korea’s largest car rental company, has selected Korea Investment & Securities and NH Investment & Securities as the lead joint underwriters for the planned IPO in the second half of this year.

“Some advisors have found an opportunity to provide advisory services and started securing potential investors for Green Car,” said an industry source, adding, “They have initiated their work to participate in the deal after obtaining information that a new advisor will be selected.”

Green Car’s fundraising will be one of the important factors in Lotte Rental’s IPO. It is the second largest car sharing company in the country after SoCar, which has expanded its business to various mobility segments by raising huge amounts of money. Green Car’s growth has been stagnant due to its sluggish fundraising.

The firm has been unable to demonstrate great scalability compared to its competitors, including SoCar and Tada, even though it has a higher proportion of electric vehicles compared to SoCar. This would lower the burden of fuel costs.

However, there are some advantages. A new investor could become the second largest shareholder of Green Car through the latest deal, and Green Car also has higher profitability than SoCar, which has continued to make losses.

Lotte Rental reportedly wants Green Car to be valued at over 500 billion won. The investment is likely to be worth about 200 billion won, including new and old shares.

“Green Car is a close second in the car-sharing business, but lacks scalability compared to SoCar,” said an industry source, “Whether the company will be able to prove its scalability will determine the possible success of the investment.” (Reporting by Ik-hwan Choi)