SK IET prices IPO at top end on record institutional demand

[Photo by SK IE Technology Co.]

SK IE Technology Co. (SK IET), world’s top Tier 1 wet process electric vehicle battery separator, has easily priced its initial public offering at the top end of 105,000 won ($93) to raise 2.3 trillion won after hoisting up the bar in institutional book-building for a Korean IPO.

SK IET disclosed Monday that it has priced its IPO of 21.39 million shares at 105,000 won apiece, with more than six out of 1,734 institutions bidding at the highest price or beyond and nearly that many vowing a lockup to win as many shares as possible. The competition ratio of 1,882.9 to 1 was the hottest-ever in IPO book-building in the country.

Given the heated demand, the company could have raised the IPO price, but nevertheless kept the ceiling unchanged to keep the price “friendly to the market,” said one official from the underwriting bank.

The last hot IPO was SK Bioscience that joined the Kospi last month with a ratio of 1,275.5:1 in institutional competition with deposits at 3,166 trillion won.

Of the IPO, 8,556,000 are new issues and the rest offered by its largest shareholder SK Innovation. Given the institutional heat, public subscription for 25 percent of the total IPO taking place on Wednesday and Thursday will also likely set a new record by exceeding 63.6 trillion won retail deposits for SK Bioscience.

Upon debut, the stock would be capitalized at 7.5 trillion won.

Shares of SK Innovation closed Monday 1.3 percent up at 273,500 won. SK IET was spun off from SK Innovation, Korea’s No.3 Li-ion battery maker, in May 2019. SK Innovation will remain as the largest shareholder with a 61.2 percent stake.

SK IET is the world’s Tier 1 wet process EV battery separator maker with a 26.5 percent share as of last year, according to SNE Research data. The company plans to use the IPO proceeds on expanding its separator plant in Poland.

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