SEOUL: South Korean construction company Hyundai Engineering said on Tuesday it had reached out to brokerage firms at home and abroad for them to make bids to carry out the firm's initial public offering (IPO).

Hyundai Engineering, an affiliate of Hyundai Motor Group, engages in the civil and infrastructure engineering and construction business.

"We have submitted our proposals to brokerage firms, but details of the IPO timeline or plans have not been decided yet," a Hyundai Engineering spokesperson said, adding that the company was eyeing an IPO to improve its credibility in the global market and to secure financial flexibility.

Hyundai Engineering & Construction Co Ltd owns 38.6% of Hyundai Engineering, while Hyundai Motor Group chairman Euisun Chung has a 11.7% stake in the firm, according to the company's regulatory filing.

In March, the construction firm reported an operating profit of 259 billion won ($229.87 million) in 2020, down 37% from a year earlier. Revenue rose to 7.2 trillion won in 2020, up about 6% from a year earlier.