South Korean battery material maker SKIET shares debut at double IPO price

South Korean battery material maker SKIET shares debut at double IPO price

FILE PHOTO: Batteries for electric vehicles are manufactured at a factory in Dongguan
FILE PHOTO: Batteries for electric vehicles are manufactured at a factory in Dongguan, China, September 20, 2017. REUTERS/Bobby Yip

SEOUL: South Korean battery material maker SK IE Technology (SKIET) saw its stock debut on Tuesday (May 11) at double its initial public offering (IPO) price, amid rising expectations of electric vehicles (EV) displacing those powered by fossil fuel.

SKIET's shares opened at 210,000 won, valuing the manufacturer at about 15 trillion won (US$13.44 billion).

The listing comes as automakers worldwide increasingly add and even replace traditionally powered cars in their line-ups with new-energy alternatives such as fully electric vehicles.

SKEIT supplies separators, a key component in lithium-ion batteries, to battery makers including SK Innovation, Samsung SDI, LG Energy Solution and Japan's Panasonic. Last year, revenue from the component made up 56 per cent of total sales, accelerating from 19 per cent in 2018.

It priced its IPO last month at 105,000 won per share, the top of its indicative price range.

Last month, Chief Executive Rho Jae-sok said SKIET will use money raised through the sale of new shares for capital expenditure, with such spending topping 700 billion to 800 billion won annually for the next few years.

SKIET operates factories in South Korea and China. In March, it said it would spend about 1.13 trillion won building two plants in Poland.

Source: Reuters/jt

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