"The proceeds from the IPO will be used to establish new production lines and develop products as we seek to leverage our auto parts manufacturing expertise to offer integrated motion solutions," Na Min-soo, an executive director at the company, said at a pre-IPO press conference in Seoul on Friday.
"I hope C&M will be recognized not only for its profitability but also as a trusted manufacturer that grows alongside its customers by meeting their needs," he added.
Founded in 2006 as a spin-off from LG Electronics' motor division, which dates back to 1980, C&M initially produced motors for household appliances such as air conditioners and washing machines. It has since expanded into automotive motors used in electric compressors, steering and gear-shifting systems, with vehicle components now accounting for about 70 percent of revenue.
Its customers include LG Electronics, automotive thermal management supplier Hanon Systems and major auto parts maker Hyundai Mobis. Its components are used in vehicles manufactured by BMW, Volkswagen, Mercedes-Benz and Hyundai Motor.
Na emphasized that the firm has strengthened its competitiveness by bringing key manufacturing processes in-house, from motor-core stamping and molding to automated assembly, allowing it to maintain consistent quality and control costs.
"Ultimately, our fundamental strength is manufacturing," he said.
C&M operates three factories in South Korea and two in China, with combined annual capacity exceeding 10 million motors. Its in-house operations also cover heat treatment, coil winding, testing and quality verification, giving it greater control over the production process.
Its manufacturing capabilities have helped secure long-term supply contracts with major automotive customers.
As of the end of June, outstanding orders stood at 1.47 trillion won, about 6.1 times last year's revenue. Of that, 955.9 billion won came from established automotive motor products and another 510 billion won from expanded applications, including high-voltage electric compressors, hybrid vehicle components and drive-system assemblies.
For electric compressor motors alone, C&M delivered 6.08 million units between 2018 and the first half of 2026 and has secured orders for 10.51 million units through 2033.
The firm is also developing 800-volt motors for newer electric vehicle systems and aims to complete a model with manufacturing costs about 20 percent lower than existing products by the end of this year.
Building on its automotive business, C&M is expanding into data center cooling, robotics and defense.
For AI data centers, where powerful servers generate substantial heat, it already mass-produces 4-kilowatt and 8-kilowatt electronically commutated motors for LG Electronics. The motors help control airflow and keep cooling systems running efficiently.
It plans to develop three additional models rated at 2.2, 3 and 6 kilowatts by March 2027 and expand into integrated fan modules that combine motors and fans in a single unit.
In robotics, C&M began supplying prototype joint actuators for four-legged robots in September under its HyperAct platform, a standardized system for controlling robotic joints. Actuators combine motors with other components to produce precise movements.
It also signed a supply agreement with OpenPath Robotics, a company founded by former researchers at the Korea Advanced Institute of Science and Technology's HUBO robotics laboratory on Thursday. The agreement covers actuators for four-legged robots as C&M seeks to participate in a government-backed AI robotics deployment program.
The firm is showcasing its Hyper Act-S actuator at an exhibition at KINTEX, a major exhibition and convention center in Goyang, northwest of Seoul, this week and plans to expand into robots that combine wheels and legs as well as humanoids in 2027.
Na said the firm expects to complete its initial product development by December, paving the way to secure before new customers in Japan, Europe and other overseas markets.
In defense, C&M is developing drone propulsion modules that combine motors with electronic speed controllers, which regulate motor speed. It aims to offer products for drones in the 10-, 25- and 150-kilogram classes by 2028.
To support the expansion, C&M plans to allocate 28.5 billion won from its IPO funding plan to research, development and production facilities across the four business areas. Part of the investment will go toward its Asan factory to strengthen existing automotive operations.
In the first half of 2026, revenue reached 145 billion won, more than 60 percent of last year's total, with operating profit of 11.4 billion won.
Na said C&M had anticipated stronger profit margins this year, but rising raw material costs linked to the conflict involving Iran and sharp currency fluctuations had weighed on profitability.
Its supply contracts allow changes in material costs and exchange rates to be reflected in selling prices, but only after a time lag, leaving the company temporarily exposed to unfavorable movements.
"We expect revenue of around 310 billion won next year, with an operating margin over 8 percent," Na said, expecting profitability to recover as those price adjustments take effect and production volumes increase.
The IPO was initially planned for early this year but was delayed by about six months as C&M worked to align its accounting practices, Na said. The postponement brought the listing into a more difficult market environment than the company had expected.
Despite those near-term challenges, C&M aims to become a top-tier global motion solutions supplier by 2030, moving beyond individual motors into integrated systems for multiple industries.
Park Jung-hyun, president of C&M and a former head of LG Electronics' motor business who also led its Seoul-based research operations in Seoul, told AJP that overseas investor feedback, including from Hong Kong, had been positive.
"International investors showed greater interest in C&M's long-term growth prospects, while domestic investors tended to focus more on near-term valuations and IPO performance," Park told AJP. "I hope investors will look beyond the excitement surrounding an IPO and short-term trading gains, and judge whether a company has the potential to keep growing over the long term."
"Share prices may fluctuate with short-term trading flows, but we will not let that distract us from running the business our way," he added.
C&M plans to offer 2.95 million shares at an indicative price of 10,000 to 13,000 won apiece, raising between 29.5 billion and 38.35 billion won. The price range implies a market capitalization of 294.5 billion to 382.85 billion won.
The institutional investor offering will run through Nov. 9, followed by a public offering for retail investors on Nov. 12–13. The firm is targeting a KOSDAQ debut later this month, with Korea Investment & Securities serving as the lead underwriter.
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