The deal would be the largest South Korean IPO since battery maker LG Energy Solution raised $10.72 billion in 2022, according to Dealogic data.

Ahead of HD Hyundai Marine, the country's largest IPO last year was Ecopro Materials, raising $321 million.

The ship maintenance and repair service provider said in a regulatory filing late on Monday that it plans to offer 8.9 million shares, priced between a target range of 73,300 won to 83,400 won each.

HD Hyundai Marine Solution will issue 4.45 million new shares, while existing 4.45 million shares will be offered by private equity fund and second-largest shareholder KKR. The parent company, HD Hyundai, will remain the largest shareholder.

The company intends to invest the proceeds to strengthen its ship maintenance business and expand its eco-friendly retrofit business in response to tougher environmental regulations, it said.

The listing is expected in May.

Higher global interest rates, stubborn inflation and ongoing geopolitical conflicts have prompted a slowdown in IPOs worldwide, especially in Asia where new deals have fallen to multi-year lows.

In the Asia-Pacific including Japan region, IPOs raised $7.1 billion in the first quarter of 2024 compared to $17.3 billion at the same time last year, according to LSEG data. Korean IPOs were worth $361.6 million in the past three months, down from $509 million last year in the same period.

($1 = 1,339.6700 won)

(Reporting by Joyce Lee and Scott Murdoch; editing by Miral Fahmy)