Australia's carsales.com mulls IPO for South Korean unit (updated)

CAR

27/09/2023 08:45

(Recasts throughout, updates with details and background in
paragraphs 2-7)
       Sept 27 (Reuters) - South Korea's auto marketplace
Encarsales.com is considering an initial public offering, its
Australian parent, Carsales.com,  CAR.AX  said on Wednesday. 
   Encarsales.com has filed an eligibility review application
with the Korean Exchange for an IPO, the Australian online auto
classifieds firm said, as the South Korean unit sought to
elevate its local appeal. 
    Carsales will retain a 90% stake in its South Korean unit,
if the proposed share sale proceeds. 
        "Carsales expects to evaluate the merits of an IPO over
the course of the year," it said in an after market filing. 
  
        The Australian company expanded operations to South
Korea, taking full control of the Encarsales.com joint venture
in 2017. 
  
        Carsales flagged it has not yet reached a final decision
on the IPO and said it will only pursue one if it serves the
best interest of shareholders. 
  
        Earlier this month, South Korea saw a slew of IPO
proposals, including from collaborative robots company Doosan
Robotics, and Hyundai Global Service, backed by private equity
giant KKR  KKR.N . 
  
        Shares of Carsales.com closed 0.86% down on Wednesday. 
  
        
  

 (Reporting by Manvi Pant in Bengaluru; Editing by Subhranshu
Sahu and Dhanya Ann Thoppil)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))