Kosdaq-bound SungEel HiTech set IPO record in institutional oversubscription

[Source: SungEel HiTech Co.]

Battery recycling company SungEel HiTech Co. has set a new record in Korean initial public offering (IPO) despite cold spell on the Korean stock market, with institutional demand for its initial shares oversubscribed by 2,269 times to price them above the desired band.

SungEel HiTech announced Thursday that its IPO price has been determined at 50,000 won ($38) apiece, beyond the guidance band, as 97.4 percent of institutional bidders vied for the top end of 47,500 won.

A total 1,786 institutions, or which 15 percent in foreign names, took part in the two-day book building session from July 11 to set a record-breaking competition rate of 2,269.71:1. The previous record was set by LG Energy Solution Ltd. at 2,023:1.

SungEel HiTech’s market capitalization would be minimum 613.5 billion won upon listing on the Kosdaq on July 28.

Investors highly evaluated SungEel HiTech’s solid profit structure as its clients are not just finished carmakers but also battery and materials manufacturers.

The company raised 16.8 billion won in operating income on sales of 147.2 billion won last year. It has also already reaped 10 billion won in operating profit in the first quarter on sales of 51.5 billion won. Cobalt accounted for 49 percent of entire sales in 2021, nickel 39 percent, lithium 6 percent, and copper 4 percent.

SungEel HiTech – founded in 2000 – specializes in recycling used secondary batteries. Public subscription will take place on July 18 and 19. Retail investors seeking subscription should have an account with either KB Securities, Daishin Securities, or Samsung Securities.

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