To Finance Overseas Investments
SK On, a battery-making subsidiary of SK Innovation, will promote a pre-IPO placement to attract investments worth 3 trillion won.
SK On recently selected Deutsche Securities and JP Morgan as advisors to offer shares to private investors before an official listing.
“We are considering various strategic measures to secure financial soundness and raise funds for investment in new businesses,” SK On said. A preliminary tender will be held early next year, and an IPO will be promoted within the next five years.
The funds secured through the pre-IPO placement will be used for overseas investment. SK On announced on its "Story Day" event in July that it will expand its battery production capacity to 85GWh in 2023 and to more than 500GWh in 2030.
SK On has completed its first plant and is currently constructing its second plant in Georgia of the United States. It also decided to establish a battery joint venture with Ford to build a 129GWh plant in the United States. In Europe, the third battery plant is being built in Ivancsa, Hungary, at a cost of 2.6 trillion won. This plant will receive the largest investment among SK On battery plants in Europe. The company has also decided to invest 3 trillion won to build a fourth battery plant in China.
The total amount of the company's investment in overseas plants alone will reach 12 trillion won. SK On has executed about six trillion won so far.