SK’s EV battery material unit’s Seoul IPO fetches $2 billion

Bloomberg

South Korean energy supplier SK Innovation Co and SK IE Technology Co have raised 2.25 trillion won ($2 billion) in the battery material unit’s initial public offering, the country’s biggest in four years.
SK IE Technology has priced the offering at 105,000 won per share, the top of a marketed range, according to an exchange statement. The portion for institutional investors was 1,883 times oversubscribed. At $2 billion, the IPO of the maker of battery separators will be South Korea’s largest since mobile game-maker Netmarble Corp raised $2.4 billion in 2017, according to data compiled by Bloomberg.
The shares had been marketed at 78,000 won to 105,000 won each, with SK Innovation selling 12.8 million shares and SK IE Technology selling another 8.6 million.
SK IE Technology’s float comes as Korea is expected to see a record year for first-time share sales, with a number of billion-dollar-plus deals in the pipeline.
Companies have already raised about $2.7 billion through IPOs in Korea since January 1, more than half of the $5 billion that was fetched in all of 2020, data compiled by Bloomberg show.
A boom in retail trading in the country last year contributed to a strong 2020 for Korean IPOs, with mom-and-pop buyers piling into deals such as the float by K-pop superstar boy band BTS’ agency.
SK IE technology plans to use the IPO proceeds for capital expenditures related to capacity expansion in Poland and China, as well as for the upgrading and maintenance of its production facilities and equipment.

The company announced last month it will spend 1.1 trillion won building new factories in Poland to meet growing demand amid an EV boom in Europe.

SK IE Technology’s IPO is being managed by Mirae Asset Securities Co. and JPMorgan Chase & Co., assisted by Korea Investment & Securities Co. and Credit Suisse Group AG. Its shares are expected to start trading on May 11.