SEOUL, Feb. 23 (Yonhap) — Hyundai Heavy Industries Holdings Co. (HHIH) said Tuesday that it has attracted about 800 billion won (US$720 million) via a pre-initial public offering of its wholly owned ship repairing unit Hyundai Global Service.

HHIH said in an emailed statement that it will use the investment to expand the business of robots, artificial intelligence and hydrogen.

HHIH is a holding company of global shipbuilding giant Hyundai Heavy Industries Co.

This image, provided by Hyundai Heavy Industries Holdings Co. (HHIH) on Feb. 23, 2021, shows the company’s corporate identity. (PHOTO NOT FOR SALE) (Yonhap)

 HHIH has signed a formal deal with U.S. private equity fund KKR to sell its 38 percent stake, or 1.52 million shares, in Hyundai Global Service for 646 billion won, the company said.

In addition, HHIH will receive 150 billion won from Hyundai Global Service under the deal with KKR.

Hyundai Global Service posted 1 trillion won in sales in 2020, with its operating profit coming to 157 billion won, compared with 56.4 billion won in 2017, HHIH said.

A pre-IPO refers to the attraction of investment from investors before a company goes public.

KKR reportedly estimated the valuation of Hyundai Global Service at about 2 trillion won, HHIH said.

HHIH plans to hold its shareholders meeting on March 25 to discuss its management agenda, including a 5 to 1 stock split.

The split stocks are slated to be traded on the main Seoul bourse from April 12.