Hyundai Rental Service has decided to raise 10 billion won ($8.5 million) from subsidiaries of Hana Financial Group, the banking giant said on June 4.
Hana Ventures, a corporate venture capital arm of Hana Financial Group, will invest in the corresponding amount of redeemable convertible preference shares, with a limited partner and another affiliate, Hana Capital.
Hyundai Rental Service CEO Ga Cheol (left) and Hana Capital CEO Yoon Kyu-seon pose for a photo at Hana Capital headquarters in Seoul on June 4.
A Hana Capital representative said it would acquire the undisclosed amount of shares of the company that is seeking an initial public offering by 2020.
Hyundai Rental Service is dedicated to leasing products ranging from water purifiers and air purifiers to bidets. Launching its flagship brand “Mirae,” the company weaned itself off Hyundai Department Store in 2016, which started its own leasing firm Hyundai Rental Care.
Hyundai Rental Service earned its current name in 2015. It was named Hyundai Weguard since being founded in 2008. Its operating profit came to 6 billion won in 2018, while the net profit reached 2.6 billion won.
The company was founded by Ga Cheol, who owned 23.14 percent stake as of end-2018. Ga formerly founded coffehouse chain Ediya in 2002 and sold it in 2005.
By Son Ji-hyoung (firstname.lastname@example.org)