PLANM, Domestic Modular Leader, Prepares for IPO with Strong Performance Backing
PLANM, the leader in the Korean modular construction market, has teamed up with Shinhan Securities to begin its journey toward a public listing. Although the company was founded only five years ago, it has achieved exponential growth by rapidly expanding its business, particularly in the school modular sector.
The company is expected to officially enter the IPO process by filing for a preliminary listing review with the Korea Exchange (KRX) next year. Its ongoing Pre-IPO (private equity investment prior to an IPO) is also progressing smoothly, having already secured approximately 50 billion KRW in funding.
◇ CEO Lee Min-gyu (ex-POSCO) Founded the Company 5 Years Ago
According to Investment Banking (IB) sources on the 15th, PLANM recently signed a lead underwriter agreement with Shinhan Securities for its IPO. Shinhan is also managing the company's current Pre-IPO activities.
Founded in 2020, PLANM is a relatively young company, but CEO Lee Min-gyu had been conducting extensive research into modular construction long before its inception. Modular construction is a method where building components are pre-fabricated in a factory and simply assembled on-site. While at POSCO International, Lee led major projects, including the mobile hospital for the National Medical Center and mobile school modular initiatives.
Leveraging this expertise, Lee launched PLANM with a primary focus on eco-friendly modular solutions. By ensuring strict compliance with both building and fire safety codes—including seismic and fire-resistant designs—the company targeted the public sector. Rapid monetization was essential to recover significant initial investments, and PLANM successfully dominated the school modular market. It currently holds the number one position in domestic market share, primarily through its success in the public sector.
Financial indicators clearly reflect this sales success. Revenue, which was 14.1 billion KRW in 2021 (the company’s second year), surged to 120.8 billion KRW last year. During the same period, operating profit grew from 1.2 billion KRW to 29.1 billion KRW. Last year’s operating profit margin reached 24%—a remarkably high figure rarely seen in the traditional construction industry.
◇ Securing 50 Billion KRW in Pre-IPO Investment Demand
Recognizing PLANM’s significant growth potential, Shinhan Securities began full-scale discussions for the company’s IPO early this year. With a Pre-IPO planned ahead of the official listing, the firm prioritized formalizing the funding structure. Notably, Shinhan Securities has committed to participating as a direct investor in addition to acting as the lead manager for the Pre-IPO.
Investor response has been highly favorable. Out of a total fundraising target of 80 billion KRW, approximately 50 billion KRW has already been secured. Given the additional interest from venture capital (VC) firms, the company is expected to reach its 80 billion KRW goal without difficulty.
With this large-scale capital injection, PLANM plans to expand its business into the private sector and global markets. While modular construction is a well-established method in many developed countries, it has historically received less attention in South Korea. Although the company has primarily focused on the school modular sector to date, it is now aiming to diversify into the private corporate market. Furthermore, PLANM is actively seeking new business opportunities by securing orders for modular hotels and educational facilities in advanced markets such as the United States and Australia.
An investment banking (IB) industry official remarked, "The CEO and the core management team possess deep expertise in modular technology, which allows them to consistently reduce costs through optimized design and process management. They are currently on track to file for a preliminary listing review next year."
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