O Jeonggang, CEO of Enchem, "The secret to rapid growth is the next generation... We will enhance Korea's battery competitiveness"

[Cheonan (Chungnam) = Asia Economy Reporter Park Soyeon] Enchem, an electrolyte manufacturing company preparing to enter the KOSDAQ next month, has set its public offering price at 42,000 KRW, far exceeding the expected price band of 30,000 to 35,000 KRW. On the 15th and 18th, demand forecasting was conducted targeting domestic and international institutional investors, with 1,721 institutions participating. The simple competition rate was 1,647 to 1, with a total public offering amount of 95 billion KRW, and the market capitalization after listing is expected to be around 634.5 billion KRW.

On the 20th, Oh Jeonggang, CEO of Enchem, met at Enchem Pungse Plant in Pungse-myeon, Cheonan-si, Chungcheongnam-do, and said, "We succeeded in attracting interest in the subscription targeting institutional investors," adding, "It seems that the fundamental aspect of a company whose sales double every year was reflected in the decision-making of institutions."

Enchem is a producer of electrolytes, one of the four core materials of secondary batteries (cathode materials, anode materials, electrolytes, separators). It succeeded in the world's first second-generation electric vehicle electrolyte business. It has established local production plants in the U.S., Europe, Korea, and China, building a global production infrastructure. Among electrolyte companies worldwide, it ranks first in sales growth rate (average annual 83.2% from 2013 to 2020). LG Energy Solution, SK On, and CATL are Enchem's major customers.

CEO Oh cited 'next-generation technology' as the secret to rapid growth. He said, "When the company was founded in 2013, first-generation electric vehicle batteries were being sold, but we focused on the second generation," adding, "I always tell my team to develop products that will be on the market five or ten years from now."

Right after the company's establishment, they began developing products to be sold in 2017, five years later, rather than products that could be sold immediately. He said, "People might think we were crazy, but it was aligned with the development process of second-generation electric vehicles," adding, "We have always taken on new challenges."

CEO Oh is a former researcher who has worked at major companies such as SKC, Cheil Industries, and Samsung SDI. He said, "If I were a research director, I would have to develop and sell products within my term, but being told to develop products that will be sold five years after my retirement is far from personal desires," adding, "However, leveraging the advantages of owner management, I always try to focus on the future."

He possesses not only technical expertise but also a broad network that dispels market prejudices against researcher-turned-entrepreneurs. CEO Oh regularly meets and exchanges ideas with representatives of the top 1 to 5 global electrolyte companies from China and Japan. He said, "We study the strategies of leading companies a lot, but if we try to follow them exactly, it only leads to cutthroat competition," adding, "If competitors make product A, we plan to develop the next product, A Prime."

He said, "When you go to the global market, the phrase 'business for the nation' (Saeop Boguk) that I used to take lightly in my youth resonates deeply," adding, "The success of our customers, who are major Korean battery companies, is our company's success and, furthermore, leads to shareholders' profits."

He continued, "Looking at the global battery market, Chinese battery companies use Chinese partner products, and Japanese companies use only Japanese products," adding, "As our battery companies expand production bases to the U.S., Europe, and China, the only companies that can expand alongside them are Korean companies, so we will work hard to grow our business."

Meanwhile, Enchem plans to hold a subscription for general investors from the 21st to the 22nd and is scheduled to be listed on the KOSDAQ market on November 1. The lead underwriter is Daishin Securities, and Shinhan Financial Investment is the joint underwriter.