SK On to Launch 3 Trillion KRW IPO for Overseas Battery Investment

SK On Attracts Largest Ever External Investment
Plans IPO Within 5 Years After Pre-IPO
Accelerates Overseas Factory Expansion

[Asia Economy Reporter Hwang Yoon-joo] SK On, the battery business subsidiary of SK Innovation, is set to actively pursue pre-IPO equity investment worth around 3 trillion KRW.

According to the investment banking (IB) industry on the 25th, SK On recently selected global IB firms Deutsche Securities and JP Morgan as advisors to initiate the process of raising approximately 3 trillion KRW in investment funds.

SK On stated, "We are reviewing various strategic options to secure financial soundness and raise funds for new business investments." A preliminary bidding is scheduled for early next year, with plans to pursue an initial public offering within the next five years.

The funds raised through the pre-IPO will be used for overseas investments. At the 'Story Day' event last July, SK On announced plans to expand its current annual battery production capacity of 40GWh to 85GWh by 2023 and over 500GWh by 2030.

As part of this, SK On has completed its first plant in Georgia, USA, and is currently constructing a second plant. Additionally, it established a battery joint venture with Ford in the USA to build a 129GWh capacity plant domestically. In Europe, SK On is investing 2.6 trillion KRW to build a third battery plant in Iv?ncsa, Hungary, marking the largest battery plant investment by SK On in Europe. In China, SK On plans to invest 3 trillion KRW to establish a fourth battery plant.

The total investment in overseas plants amounts to 12 trillion KRW. SK On is reported to have spent about 6 trillion KRW so far. The pre-IPO is expected to accelerate expansion and drive substantial growth in the battery business.