Boston Dynamics IPO: Hyundai Ownership Restructuring

Hyundai Motor Group’s decades-long effort to streamline its complex ownership structure could finally gain momentum. The potential catalyst is not a new SUV, but the company behind the back-flipping humanoid robot Atlas: Boston Dynamics.

Boston Dynamics, the auto-to-steel conglomerate’s US robotics unit, is reportedly preparing for a long-anticipated initial public offering (IPO) on the Nasdaq this year, according to sources. The potential listing, possibly as early as 2027, has the company expected to select underwriters and file for a preliminary review with Nasdaq.

Hyundai Motor Group Executive Chair Chung Euisun holds a 20 percent stake in Boston Dynamics. A successful IPO could provide him with a substantial financial windfall, potentially reaching 20 trillion won ($13.58 billion), according to estimates by local brokerages. This significant amount could provide the third-generation leader with the financial resources needed to settle future inheritance taxes and strengthen his control over the auto giant’s intricate web of cross-shareholdings.

Recent developments at Boston Dynamics suggest an imminent IPO.

The departure of longtime CEO Robert Playter last month is seen as a shift from the engineering-driven culture that has defined the company since its MIT origins to a more commercially oriented structure. The company is now led by interim CEO and CFO Amanda McMaster, according to observers.

Hyundai Motor Group has also established a dedicated robotics and artificial intelligence (AI) strategy task force under Vice Chair Chang Jae-hoon. Analysts believe this move aims to pave the way for a potential Boston Dynamics IPO and address investments and governance restructuring.

A Boston Dynamics IPO has been a topic of discussion within the group and the broader market for some time.

Hyundai Motor Group acquired the company from SoftBank in June 2021, with its affiliates — Hyundai Motor, Hyundai Mobis, and Hyundai Glovis — collectively investing $660 million for a 60 percent stake. Chung also invested personally for a 20 percent stake, bringing the group’s combined ownership to 80 percent.

At the time of the acquisition, Hyundai committed to taking the company public within four years — a deadline that lapsed in June 2025. Failure to list would grant SoftBank the right to exercise a put option. SoftBank currently has until June 2026, an additional one-year grace period, to exercise that option.

Subsequent capital raises across three rounds have increased Hyundai affiliates’ ownership to approximately 68 percent, while Chung’s personal stake has grown to 22.6 percent, and SoftBank’s is at 9.5 percent, according to iM Securities.

“Hyundai Motor Group has continued to prepare for a potential IPO of Boston Dynamics, a process that is expected to gain momentum when SoftBank exercises its put option,” said Kim Yong-min, an analyst at Yuanta Securities, adding it appears less likely for SoftBank to hold onto the remaining shares.

While Hyundai has remained silent on the specific timeline, they have hinted at exploring an IPO during conference calls, acknowledging market speculation.

With the company’s Atlas robot making a notable debut at CES this year, and growing expectations around expansion and mass production in the robotics industry, valuation estimates of Boston Dynamics are increasing. Observers suggest Hyundai is playing the long game, waiting for the optimal moment to maximize returns. With market enthusiasm continuing to grow, an IPO appears increasingly likely.

Chung’s stake of over 20 percent in Boston Dynamics – acquired for roughly $220 million in 2021 – could be worth over $13.6 billion or more based on current brokerage estimates, representing a significant return on his initial investment.

This estimation is based on multiple firms valuing Boston Dynamics at over 100 trillion won, with KB Securities placing it at about 128 trillion won and Hanwha Investment & Securities projecting as high as 150 trillion won, driven by expected growth in the humanoid robot market. Other brokerages estimate the valuation between 40 trillion won and 60 trillion won.

Hyundai has faced scrutiny for years over its circular ownership structure, remaining the only major conglomerate with such a complex arrangement.

Within this arrangement, three ownership loops exist within the group. The primary loop originates with Hyundai Mobis as the largest shareholder of Hyundai Motor, which controls Kia and then circles back as the largest shareholder of Hyundai Mobis.

The remaining two cycles follow a similar pattern, each originating from Hyundai Mobis and routing through Hyundai Motor and then through affiliates Hyundai Glovis and Hyundai Steel, respectively, before circling back.

At the top of the chain is parts-maker Hyundai Mobis, which controls Hyundai Motor with a roughly 22.4 percent stake, effectively serving as the group’s de-facto holding company.

This interlinked structure has allowed the Chung family to solidify its control of the entire conglomerate through relatively modest direct stakes in the key affiliates.

However, Hyundai has faced persistent pressure from investors and regulators to unwind its circular shareholding structure. In 2018, the conglomerate attempted to overhaul its structure, but the effort was ultimately scrapped following strong opposition from shareholders and activist funds.

Amid increasing calls for restructuring and for Chung to maintain effective control of the group, he will eventually need to revamp governance, according to observers. To achieve this, Chung needs to increase his stake in Hyundai Mobis – currently 0.3 percent – by acquiring shares held by Kia and Hyundai Steel. Chung’s father, Honorary Chair Chung Mong-koo, owns a 7.29 percent stake in Mobis, which is expected to be inherited by Chung Euisun.

The proceeds from the IPO could help Chung cover this financial burden, including inheritance and gift taxes on shares held by the senior Chung, and to purchase Hyundai Mobis shares from other group affiliates.

With the senior Chung’s stakes in Hyundai affiliates exceeding 7 trillion won, a simple inheritance tax rate of 60 percent would mean a potential tax bill of more than 4 trillion won, according to Yuanta Securities.

“Assuming a Boston Dynamics’ IPO moves forward, a favorable window for Hyundai Motor Group’s governance overhaul may be fast approaching,” said analyst Kim. “The IPO could give Chung the financial foundation. Should Hyundai acquire SoftBank’s remaining stake in June and initiates IPO process, a 2027 listing could well be the trigger for the restructuring.”

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