EV battery separator leader SK IET expected to price IPO at top-end $94

[Photo by SK IE Technology Co.]

SK IE Technology Co. (SK IET), world’s top Tier 1 wet process electric vehicle battery separator, is expected to comfortably price its IPO at the top end of 105,000 won ($94) next week and raise 2.3 trillion won from the public offering next month, given the renewed heat in the Kospi market and spectacular IPO track record for SK-bearing names.

SK IET will float a total of 21.39 million common shares including 8,556,000 new issues. Their price is offered in the range of 78,000 won and 105,000 won. Pricing will be announced on Monday after two-day bookbuilding session.

Public subscription is scheduled for April 28-29. Up to 6,417,000 pieces or 30 percent of the total IPO shares will be available to the public. The shares will likely go listed on May 11.

Mirae Asset Securities and JP Morgan are acting as joint bookrunners. Korea Investment & Securities and Credit Suisse are co-underwriters.

SK IET is one of the much-talked-about IPO candidates of this year.

Spun off from Korea’s No.3 Li-ion battery maker SK Innovation in May 2019, SK IET tops the world’s Tier 1 wet process EV battery separator market with a 26.5 percent share as of last year, according to SNE Research data.

Its operating profit for full 2020 amounted to 125.2 billion won, up 55.4 percent from the previous year (after spinoff). Revenue jumped 78.4 percent to 469.3 billion won.

The company is also moving quickly for further growth. Last month, it announced 1.13 trillion won capex plan to build third and fourth battery separator plants in Poland.

It will be using part of IPO proceeds on the expansion.

Anticipation is building up high for SK IET stock to make a double win on its debut day - opening at a price doubling IPO value and closing at daily ceiling after a 30 percent gain.

Existing shares make up 60 percent of the IPO. SK IET will float shares held by its parent SK Innovation. IPOs with large portion of existing shares have performed weakly in the past.

On Thursday, shares of SK Innovation closed 0.19 percent higher at 264,500 won.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]