Enchem Submits Securities Registration Statement... Begins Listing Process on KOSDAQ Market

Scheduled to Enter KOSDAQ Market in Early November
First Domestic Development and Commercialization of Electrolyte for Electric Vehicles
Supplying Electrolytes to SK Innovation, LG Energy Solution, CATL, and Others

[Asia Economy Reporter Park Hyungsoo] Electrolyte manufacturer Enchem announced on the 16th that it has submitted a securities registration statement to the Financial Supervisory Service to list on the KOSDAQ market and has begun the full-scale public offering process.

Enchem's planned public offering price is 30,000 to 35,000 KRW per share, with a total offering amount of approximately 67.8 billion to 79.2 billion KRW. The demand forecast will be conducted over two days, on the 15th and 18th of next month. The company plans to be listed on the KOSDAQ market in early November. Daishin Securities is the lead underwriter, and Shinhan Investment Corp. is the joint underwriter.

Founded in 2012, Enchem is a producer of electrolytes, one of the four core materials of secondary batteries, including cathode materials, anode materials, electrolytes, and separators. The company develops and manufactures electrolytes for secondary batteries and EDLC (Electric Double Layer Capacitor), as well as high-performance electrolyte additives. Enchem has focused on producing and researching electrolytes for electric vehicles, which require high technical difficulty. It was the first in Korea to successfully develop electrolytes for electric vehicles.

Among electrolyte manufacturers for secondary batteries, Enchem is the first in the world to establish production and sales systems in major global battery hubs including Korea, the United States, China, and Europe. Enchem built factories within one hour's distance from battery manufacturers' production plants such as LG Energy Solution and SK Innovation. This production system enables the supply of electrolytes in the best condition within the shortest time. The localized production system has also strengthened responsiveness to customers. Enchem supplies to LG Energy Solution, SK Innovation, and CATL.

The export ratio increased from 55.3% of total sales in 2018 to 70.2% last year. Enchem plans to strengthen its position in overseas markets by expanding its overseas production infrastructure.

Enchem owns its own additive synthesis, refining facilities, and technology. To internalize raw materials, the company plans to directly produce solvents and lithium salts, which are key raw materials for electrolytes. Through joint ventures (JV), it will establish solvent and lithium salt plants in the United States and Europe. This is expected to build a stable electrolyte supply system for customers and reduce costs related to logistics and tariffs.

Sales increased from 2 billion KRW in 2013 to 137.2 billion KRW last year. The compound annual growth rate (CAGR) of sales during this period was 83%. Operating profit recorded 14.7 billion KRW last year.

Enchem plans to use the funds raised through the IPO for ▲investment in expanding factories by overseas regions ▲research and development of new businesses and new products ▲capital expenditures related to machinery and facilities.

CEO Oh Jeonggang of Enchem said, "Enchem has risen from a pioneer in the electrolyte market to a global leader," adding, "Through the IPO, we will widely promote Enchem and strive to become the world's number one electrolyte company within five years."