SK's battery unit to invite $3.3 billion pre-IPO funding this week

Asian Tech Press (Feb 7) -- SK's battery-producing unit SK On is reportedly about to do a pre-IPO fundraising this week estimated at 3 to 4 trillion won ($3.3 billion).

The Maeil Business Newspaper reported Monday that the pre-IPO fundraising will be led and managed by investment banks Deutsche Securities Inc. and JPMorgan Chase & Co.

Given SK On's valuation at around 25 to 30 trillion won, successful pre-IPO bidders could receive a 10 to 20% stake in the South Korean battery maker, the report said.

The teasers for preliminary bids have been sent to multinational private equity funds such as Blackstone Inc., The Carlyle Group, KKR & Co. Inc. and TPG Inc.

The new capital will primarily fund overseas projects, the South Korean news outlet said.

The company aims to increase production capacity to 77 GWh by the end of the year from the current 60 GWh and gradually increase it to 500 GWh by 2030 by adding capacity globally.

While it has no clear timeline for an IPO, it is expected to go public in a few years following in the footsteps of its local rival LG Energy Solution (LGES), as it will not be able to secure multinational capital without an IPO commitment.

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