Enchem Attracts 16.5 Trillion Won in Subscription Deposits... Listing on the 1st of Next Month

[Asia Economy Reporter Hyungsoo Park] Enchem continued its success in the public offering subscription targeting general investors.

Electrolyte manufacturer Enchem announced on the 24th that it recorded a competition rate of 1,275.69 to 1 in the public offering subscription held for general investors over two days from the 21st to the 22nd. Approximately KRW 16.465 trillion was raised as subscription deposits.

As a result of demand forecasting conducted for institutional investors, Enchem finalized the public offering price at KRW 42,000, exceeding the upper limit of the expected price band of KRW 30,000 to KRW 35,000.

Enchem is a company that produces electrolytes, one of the four core materials of secondary batteries, including cathode materials, anode materials, electrolytes, and separators. It succeeded in commercializing the world's first second-generation electrolyte for electric vehicles. It is the only company in the world to establish local production plants in the four major battery regions: the United States, Europe, Korea, and China, thereby building production infrastructure. Based on its core competitiveness, it has secured customers such as LG Energy Solution, SK Innovation, and CATL.

Enchem is promoting an NMP recycle business with a total production capacity of 40,000 tons, 20,000 tons each in Poland and the United States. It is estimated to generate about KRW 20 billion in sales starting next year. Beginning with research and development related to gel-type electrolytes, which are an intermediate stage between lithium-ion batteries and all-solid-state batteries, as well as fast charging and non-flammable electrolytes, Enchem plans to expand its business actively in various future batteries and electrolytes.

Enchem will use the funds secured through the public offering to invest in expanding overseas factories in countries such as Hungary and China.

CEO Jeonggang Oh of Enchem said, "We will realize our commitment to becoming the world's best electrolyte manufacturer," adding, "We will do our best to repay the customers and investors who supported Enchem."

Enchem will be listed on the KOSDAQ market on the 1st of next month. The lead underwriter is Daishin Securities, and Shinhan Financial Investment is the joint underwriter.