Sungwoo to Pursue KOSDAQ Listing... Securities Registration Statement Submitted

Core Component of Cylindrical Secondary Battery Supplied to LG Energy Solution
Offering Price Confirmed After Demand Forecast from October 10 to 16

Secondary battery component manufacturer Sungwoo announced on the 12th that it has submitted a securities registration statement to the Financial Services Commission to list on the KOSDAQ market.

Sungwoo plans to offer 300 shares to the public. The expected public offering price range is 25,000 to 29,000 KRW, and the estimated market capitalization after listing is between 376.1 billion and 436.3 billion KRW.

Founded in 1992, Sungwoo produces cylindrical secondary battery components, energy storage system (ESS) parts, and automotive electronic components based on ultra-precision press molding technology and advanced quality control techniques. Sungwoo’s flagship product, the Topcap Ass’y, is a key safety component for cylindrical batteries that cuts off current when abnormal battery temperature or pressure occurs and releases gas to prevent explosions when internal pressure builds up.

Since 2016, Sungwoo has supplied the ultra-small cylindrical battery component ‘S4623’ for wireless earphones to global IT companies. From 2018, it began supplying Topcap Ass’y parts for 18650 and 2170 cylindrical batteries to the world’s leading electric vehicle company.

Sungwoo plans to produce key components for the 4680 cylindrical battery, considered the next-generation battery. The 4680 battery features a 46mm cylindrical structure, with energy density more than five times higher than existing batteries and a 16% improvement in driving range. It is easy to mass-produce and cost-competitive, making it a ‘game changer’ in the battery market.

According to a recent report by energy market research firm SNE Research, demand for 4680 batteries is expected to expand from 10 GWh in 2023 to 650 GWh by 2030.

Through its KOSDAQ listing, Sungwoo aims to strengthen its position as a key component supplier by responding to the 4680 battery volume scheduled for mass production by global cell manufacturers in the second half of 2024. The company plans to diversify its client base and expand its product portfolio through new product development to ensure stable sales growth.

Park Jongheon, CEO of Sungwoo, said, "We will use the funds raised through the IPO to invest in facilities for entering the North American market by 2026," adding, "We will respond to the rapidly growing 4680 battery market and become a global tech leader in secondary batteries."

Sungwoo will conduct a demand forecast targeting domestic and international institutional investors over five business days from the 10th to the 16th of next month. The lead underwriter for the listing is Korea Investment & Securities.