Stock Exchange operator Korea Exchange said Hyundai has applied for approval for an initial public offering.
The size of the IPO could be between $270m and $360m, according to Korean newswire Yonhap Infomax.
Last October it was reported that Hyundai Rotem had picked the banks to lead its IPO.
Morgan Stanley holds a 42.4 per cent stake in the business with the balance owned by Hyundai Motor Co.
In February Morgan Stanley Private Equity agreed to buy a majority stake in Korean listed tissue maker Monalisa for KOW91.4bn ($83.7m).
Morgan Stanley is believed to have already held a $750m first close for its latest Asia-focused vehicle.
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