SK On is set to raise an additional 500 billion KRW following a 1 trillion KRW rights offering last month.
SK Innovation announced on the 7th that its subsidiary SK On has decided to conduct a third-party allotment rights offering to raise approximately 500 billion KRW for debt repayment and other purposes.
The number of new shares to be issued is 9,015,667 common shares, with an issue price of 55,459 KRW per share. The third-party allotment recipients are MS Energy First Co., Ltd. (5,409,401 shares), MS Energy Second Co., Ltd. (1,803,133 shares), and MS Energy Third Co., Ltd. (1,803,133 shares).
SK Innovation explained that this move is aimed at achieving management objectives such as improving the financial structure. An SK On representative stated, "SK On is raising about 500 billion KRW through new share issuance using the price return swap (PRS) method," adding, "SK Innovation executed the PRS method because it believes in SK On's high future growth potential." PRS is a financial technique widely used by many domestic companies for capital raising. If the stock price rises in the future, the gains can be recognized as profit.
The company expects SK On's profitability to improve from the second half of this year, and capital expenditures (CAPEX) to significantly decrease starting this year as major new battery expansions are completed.
SK On recorded an operating profit of 24 billion KRW in the third quarter of this year, achieving its first quarterly profit in three years since its establishment as an independent corporation in October 2021.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
