[IPO] Samki EV "Leap to Global No.1 Secondary Battery Component Company"

[Asia Economy Reporter Jang Hyowon] Samgi EV, a specialized company in secondary battery components, is knocking on the door of the KOSDAQ market. Samgi EV plans to expand its production plant in the United States after listing.

On the 16th, Samgi EV held a press conference in Yeouido, Seoul, to introduce the company for its KOSDAQ listing. Established in 2020, Samgi EV develops and manufactures various secondary battery safety enhancement components based on high vacuum die-casting technology. It holds the number one domestic market share for its main product, the end plate.

The end plate is a high-strength, lightweight aluminum component that is essential on both ends of the secondary battery cell housing. It protects the cell from external shocks and minimizes module damage caused by internal cell expansion. Samgi EV’s end plate products are currently supplied to global automakers such as Volkswagen, Audi, Porsche, Maserati, and Ford through LG Energy Solution.

On the 16th, Kim Chi-hwan, CEO of Samgi EV, held a press conference in Yeouido, Seoul, to introduce the company ahead of its KOSDAQ listing. / Photo by Samgi EV

With the electric vehicle market growing rapidly, Samgi EV recorded sales of 116.9 billion KRW and an operating profit of 7.4 billion KRW in 2021. The company has secured a large order backlog by signing long-term contracts to supply end plates to several global automakers in Europe and the United States, establishing a stable revenue structure for the coming years.

Additionally, Samgi EV has established its own specialized R&D organization for secondary batteries, focusing on systematic enhancement of technological capabilities. Based on its excellent R&D capabilities, the company is expanding its customer base and diversifying its product portfolio. As a result, it is jointly conducting new projects with various secondary battery companies beyond its existing main clients.

Following the implementation of the U.S. Inflation Reduction Act (IRA) in August last year, which increased the need for localization by secondary battery and automaker companies in North America, Samgi EV is the most proactive among secondary battery component companies in entering the North American market. The company has secured a site in Alabama that is about three times larger than its two existing domestic factories combined.

Since Alabama is adjacent to production bases of major secondary battery companies and global automakers, the company explained that it plans to aggressively target global and local companies in the North American market based on this geographical advantage and overwhelming production capacity. Samgi EV aims to achieve 300 billion KRW in sales from its North American subsidiary alone by 2027.

Samgi EV plans to diversify its customer portfolio and maximize the effects of its U.S. expansion while securing new orders for next-generation secondary battery components based on its high R&D expertise. Through this, the company aims to achieve total sales of approximately 295 billion KRW by 2025, combining domestic and U.S. subsidiaries.

Kim Chi-hwan, CEO of Samgi EV, said, “Samgi EV is expanding its secondary battery component business with industry-leading production technology and R&D expertise, demonstrating steep performance growth. We will not only secure additional customers and diversify our secondary battery component portfolio but also leverage the benefits of IRA and USMCA to become the number one global secondary battery component company.”

He added, “The funds raised through this IPO will be used to build Samgi EV’s production plant in the United States. In addition, we plan to diversify our customer base to include domestic and international secondary battery cell and system makers as well as global automakers, and to enter new secondary battery component markets.”

Meanwhile, the total number of shares offered by Samgi EV is 3,552,037. The expected offering price ranges from 13,800 to 16,500 KRW, with the total expected offering amount ranging from 49 billion KRW to 58.6 billion KRW based on the lower and upper price limits. After demand forecasting on the 17th and 18th, the offering price will be finalized, followed by subscription from the 25th to the 26th. The KOSDAQ listing is scheduled for February 3, with Daishin Securities as the lead underwriter.