Korean battery material producers join IPO rush in H2

Battery materials and equipment manufacturers in South Korea will enlighten the country¡¯s technology-ridden Kosdaq bourse with new entries in the second half amid promising outlook for the battery market.

G.I.Tech Co., a producer of electrode components for secondary and hydrogen cells, filed plans on June 10 to float on the Kosdaq, according to the nation¡¯s stock exchange operator Korea Exchange (KRX). Its main products are slot dies and slit nozzles, core parts for secondary cell manufacturing. Its operating profit surged 217 percent to 5.3 billion won ($4.7 million) in 2020 from 1.7 billion won a year ago, and its revenue jumped 37 percent to 17.2 billion won from 12.5 billion won.

The company will offer 7,881,000 shares of which 2.7 million will be placed for public subscription. Its largest shareholder is CEO Lee In-young who holds a 59 percent in the company.

Onejoon which applied for preliminary IPO review on May 28 is a manufacturer of rotary kilns, a key product for anode and cathode materials. It commands more than 50 percent of the domestic rotary kiln market and Posco Chemical is one of its major clients. It will place 5,034,037 shares with 1,004,807 up for retail subscription.

Battery electrolyte producer Enchem founded in 2012 also filed its plans to go public on the Kosdaq market. The company has its own additive synthesis technology that enables rapid development and mass production of electrolyte.

Its operating profit reached 14.7 billion won in 2020, up 13 percent from 12.9 billion a year earlier. Revenue jumped 56 percent to 137.2 billion won from 87.9 billion won. But its net loss widened to 2.3 billion won from 457 million won.

The company is also seeking to expand its overseas manufacturing facilities in Poland, China and the U.S. It will put 2,262,625 shares for public subscription out of total offering of 15,122,774 shares.

Battery-related stocks have lost grounds due to concerns of the higher U.S. interest rates and fire issues but they could rebound in the second half, market experts predict.

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