Promoting a Pre-IPO of SK On
SK Innovation vice chairman Kim Jun said on March 31 that he expected an initial public offering (IPO) of SK On, a battery subsidiary that was split off in 2021, after 2025.
“We are not planning SK On’s IPO in the near future,” Kim said in a question-and-answer session after the 15th regular shareholders’ meeting at SK Seorin Building in Jongno-gu, Seoul. “SK Innovation’s corporate value will be enhanced if SK On is listed when the value of its battery business is properly recognized.”
“As of the end of 2021, SK On’s production capacity stood at 40 GWh,” Kim continued. “It is expected to exceed 77 GWh at the end of this year and 220 GWh in 2025. We expect that SK On will be able to show a meaningful business performance after 2025. Its IPO will be promoted then.”
SK On is promoting large-scale projects, including the establishment of a joint venture in Turkey and a joint venture plant in North America with Ford. “We are pursuing a pre-IPO,” Kim said regarding the financing for such projects. “The size of financing is under discussion, but it is not much different from the amount (about 3 to 4 trillion won) reported by the media. We expect the closing of a deal in the first half of the year.”
“We are studying financing options, including receiving investment incentives from the Turkish government and attracting investment through long-term financial investors without damaging financial soundness,” Kim added. “I don’t think there will be a problem in financing our facility expansion plans.”