SK IE Technology (SK IET) said that it would start the filing process for its initial public offering (IPO). In 2019, South Korea’s SK Innovation launched SK IET to enhance competitiveness and strengthen its material business management and solutions. Aside from boosting SK’s material production businesses, SK IET advanced its plan to become a leading global material solution provider. Generally, SK IET provides solutions for lithium-ion battery cell separators, image display units, and other IT devices.
According to some inside sources, the Korea Exchange granted the company preliminary approval for its stock market launch. Through the IPO, the wholly-owned SK Innovation subsidiary aims to amass at least $1 billion. Furthermore, SK IET would decide the final price of shares, which determines its value, after it finalizes the IPO process. The sources also stated that the South Korean system usually takes a few weeks to complete the processes.
As shown in SK IET’s regulatory filing, SK Innovation holds 90% of SK IET. The company’s filing also stated that it made a $120 million operating profit last year and a $406 million revenue. Since 2020, SK Innovation has been advancing SK IET’s IPO and securing investment funds for future business expansions.
Additional SK IET Proceedings
In addition to acquiring preliminary approvals and other market debut preparations, SK IET also plans to support the fast-growing electric vehicle battery industry. Moreover, SK IET’s lithium-ion battery separator technology is fundamental to EV battery production. This week, SK IET announced it would make its most extensive EV battery separator business investment yet. During a board meeting, SK IET decided it would provide over $997 million to build two new plants in Poland. Accordingly, SK IET would increase its annual production capacity with the investment, especially when combined with its existing plants’ capabilities.
SK IET also declared that its technologies offer better safety since batteries equipped with its separators have never caught fire. By continuously investing in its separator business, SK IET cements its position as a top separator manufacturer.
South Korean IPO market
Besides SK IET, other South Korean companies have also filed for IPOs, such as Coupang. Earlier, e-commerce giant Coupang successfully listed its stocks and debuted on the New York Stock Exchange with backing from SoftBank. In preparation for its IPO, Kakao Bank already picked advisers and would announce when it would list sometime this year. The video game company Krafton is also planning for an IPO, targeting to raise around $4.4 billion.
Check out other must-read articles from KoreaTechToday:
- Coupang Sees Spike in Shares Amid 2021’s largest US IPO Yet
- US-Based NeoImmuneTech Targets 96 Billion Won IPO in KOSDAQ
- Coupang Files IPO in US for Next-Generation E-commerce Experience
- Carlyle Group Buys $200 Million Worth Shares of Kakao Mobility