Lotte Data Communication Co., an information technology unit of South Korean conglomerate Lotte Group, and the country’s third largest low-cost carrier T’way Air Co. will go public on the country’s main bourse Kospi next month.

The country’s stock exchange approved the plan on Tuesday.

Korea Exchange announced on Tuesday that it has approved each initial public offering plan by Lotte Data Communication and T’way Air after reviewing their preliminary applications.

Lotte Data Communication is a system software developer and supplier fully owned by Lotte Holdings Co. The company raised 20.7 billion won ($18.6 million) in net profit on sales of 691.3 billion won last year on an individual basis.

Lotte Data Communication is the first IPO by a unit under Lotte Group since the conglomerate transformed into a holding company structure. Lotte Holdings has previously announced that it is reviewing IPOs of its subsidiaries in a move to improve corporate and shareholder value.

An unnamed official from Lotte Group said the IT unit will strive to become a global IT service provider through the upcoming IPO. It will focus to expand its platform business based on new technology convergence, establish innovative eco-system based on a search for outstanding solutions, and enhance overseas business with the proceeds from the listing.

T’way Air is the country’s oldest and third-largest low-cost carrier with its 89.79 percent share owned by T’way Holdings Inc. and three other shareholders. The company raised 39.7 billion won in net profit on sales of 584 billion won on an individual basis last year. The carrier transported 3.27 million people on international routes last year, up 62 percent from a year ago.

T’way Air recently announced a plan to add five new aircrafts this year and bring in eight Boeing 737 MAX 8 next-generation aircrafts by 2021 to secure new mid- and long-haul routes.

The IPO of T’way Air is expected to win much interest from investors as it comes at a time when the country’s low-cost carrier industry has gained a growth momentum and the local currency has been strengthening against the U.S. dollar, a move that would make overseas trips cheaper for Koreans. The company’s solid performance is also expected to lead to strong investors’ appetite.

By Cho Hee-young and Lee Eun-joo

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