This article was published on July 8, 2025, at 3:20 p.m. on the ChosunBiz MoneyMove site.
Interest from the investment banking (IB) sector is high for IEN HanChang, a transformer manufacturer in Busan. This is because IEN HanChang made an operating profit of 150 billion won last year, with an astonishing profit margin of 68%. Participants in the IB sector are also sending love calls to IEN HanChang to share in the benefits of the global power super cycle.
According to the IB sector on the 8th, IEN HanChang has received various offers from domestic and foreign private equity fund (PEF) operators but is reportedly ignoring them. It has been said that some operators suggested minority equity investments as well as a buyout.
Global PEF operator Carlyle sat at the negotiation table last year, but the deal reportedly fell through due to disagreements over corporate value. Analysts suggest that Carlyle's intent to acquire may have been strong, as it had not engaged in any buyout transactions since acquiring Twosome Place in 2021.
IEN HanChang has also reportedly rejected offers from major domestic securities firms that approached them for an initial public offering (IPO). IEN HanChang's steady growth in sales and operating profit means that they are not in urgent need of cash through listing. It is known that if they do go public, they are considering listing on the U.S. Nasdaq rather than domestically.
A contact in the IB sector noted, “IEN HanChang will eventually need to pass the business down, so they will need resources for inheritance tax. However, they are making good profits, so securing cash through listing or selling existing shares is not urgent.” They added, “I understand they are looking for a global partner to assist them with their Nasdaq listing, even if they receive investments.”
As renewable energy sources like solar and wind power expand and data centers are established around the world, the demand for IEN HanChang's transformers is increasing. The modernization and refurbishment of power grids is also impacting the increase in transformer demand.
IEN HanChang's performance is rapidly growing. Revenue rose from 26.9 billion won in 2021 to 78.3 billion won in 2022, 104.9 billion won in 2023, and projected to be 225.2 billion won in 2024. Operating profit soared from 3.2 billion won in 2021 to 31.6 billion won in 2022, 62 billion won in 2023, and 153 billion won in 2024.
Established in 1975, IEN HanChang can design and manufacture distribution transformers and high-voltage large-capacity transformers. The majority of its sales occur overseas, including in the United States. The founder is Chairman Jang Myung-eon (inside director), and his son, President Jang Yeon-deok, serves as the CEO. As of the end of last year, the father and son held equity stakes of 38.26% and 34.11%, respectively.