Lotte Data Communication Co., an information technology unit of South Korea’s fifth largest conglomerate Lotte Group, is readying to go public on the Korean main bourse to raise financing for expansion to new businesses and overseas markets.

The company said on Thursday it has submitted an application for an initial public offering plan to the Korea Exchange, which would be the first IPO in the family of Lotte Corp. that was reorganized in October last year to act as the holding entity for the conglomerate. Details of the IPO schedule were not disclosed.

Lotte Data Communication hopes to use the proceeds to venture into new businesses like IT solutions for logistics, high-rise buildings and smart factories, and systems using artificial intelligence, Internet of Things and blockchain technologies.

It also hopes to strengthen its business in overseas markets with eyes on financial and medical services in Vietnam and retail and online businesses in Indonesia.

Lotte Data Communication designs and operates IT systems. It reported an operating profit of 32.7 billion won ($30.5 million) last year on sales of 691.3 billion won. The IPO plan is part of the pledge by Lotte Group Chairman Shin Dong-bin to simplify the notoriously complex cross-shareholding structure of the group. Shin was sentenced to 30 months in prison for bribery charges and then was immediately put behind bars last month.

By Lee Yoo-jin and Lee Ha-yeon

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