Korean battery copper foil maker KCFT readies for IPO in Kospi

2019.05.13 12:01:12 | 2019.05.13 13:28:20

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KCF Technologies Co. (KCFT), South Korea’s leading battery copper foil and flexible copper clad laminate (FCCL) maker, is set to go public in what could be one of this year’s biggest newcomers to the Korean market.

According to investment bank industry sources on Sunday, Kohlberg Kravis Roberts (KKR) & Co., U.S-based investment firm that owns a 100 percent stake in KCFT reportedly is speeding up the process to list the copper foil and FCCL maker in Korea’s main Kospi bourse this year. Local brokerage Mirae Asset Daewoo has been picked as a lead underwriter for the IPO deal, with Shinhan Investment and KB Securities named as co-underwriters.

It is reported that KCFT will submit a preliminary IPO application to the Korea Exchange by the end of this month, according to the sources. It generally takes about 45 days to complete the preliminary evaluation.

Industry experts estimate KCFT’s market capitalization to reach between 1.5 trillion won and 2 trillion won, given that Iljin Materials, Korea’s another major electric car component maker, has a market cap of 1.5 trillion won based on the stock’s closing price on Friday.

Other secondary battery materials producers EcoPro BM. Co. and Chunbo Co. went public earlier this year in big success, boding well for KCFT’s IPO. If it debuts on the Kospi successfully, it could become this year’s biggest IPO in the country.

KCFT, based in Korea, manufactures copper foils for lithium-ion batteries for electric vehicle applications and mobile devices as well as FCCL used in displays for TVs and smartphones. It was a part of LS Mtron Ltd, industrial machinery making unit of Korea’s LS Group, until the parent carved out the copper foil and FCCL businesses and sold them to KKR & Co. in early 2018. The global investment firm bought a full stake in LS Mtron’s copper foil and FCCL businesses plus a 47 percent stake in LS Automotive, LS Group’s automotive electric parts making unit, for combined 1.05 trillion won.

KCFT is the world’s sole producer of industry’s thinnest 5 micrometer-copper foil used in lithium-ion batteries. The company earns nearly 80 percent of its sales from the battery copper foils, and supplies them to major global lithium-ion battery makers including Korea’s LG Chem and Samsung SDI as well as China’s CATL and BYD.

It is reported that the company generated 300 billion won in sales for full 2018 and its earnings before interest, taxes, depreciation, and amortization (EBITDA) neared 80 billion won.

By Korean battery copper foil maker KCFT readies for blockbuster debut at Kospi

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