SYDNEY, April 23 (Reuters) - HD Hyundai Marine Solution is set to price its shares at the top of an indicative range to raise 742 billion won ($538 million), two people with direct knowledge of the matter said, in South Korea's largest initial public offering in two years.

The people spoke on condition of anonymity as the information was confidential.

The indicative price range for the 8.9 million shares to be sold in the IPO was 73,300 won to 83,400 won each, regulatory filings showed.

Hyundai Marine Solution will issue 4.45 million new shares for the IPO, while existing 4.45 million shares will be offered by private equity fund and second-largest shareholder KKR Inc .

The parent company, HD Hyundai, will remain the largest shareholder in Hyundai Marine, a ship maintenance and repair service provider.

An official at Hyundai Marine said the company cannot confirm the IPO share price and that it would be released on Wednesday. KKR did not respond to a request for comment.

The deal is the largest South Korean IPO since battery maker LG Energy Solution raised $10.72 billion in 2022, according to Dealogic data. (Reporting by Scott Murdoch in Sydney; additional reporting Jack Kim in Seoul, Editing by Christopher Cushing and Himani Sarkar)