SKIET draws $73 bn in subscription deposits, setting new IPO record in Korea

2021.04.30 08:32:30 | 2021.04.30 08:33:03

[Photo by Han Joo-hyung]이미지 확대

[Photo by Han Joo-hyung]

SK IE Technology (SKIET) initial public offering (IPO) shares received the largest-ever 80.9 trillion won ($73 billion) in subscription deposits from individual investors on the South Korean bourse after they were 288 times oversubscribed during the two-day retail subscription period.

Retail investors deposited 80.9 trillion won in total to own shares of the battery materials subsidiary of SK Innovation Co., and the final average competition intensity was 288.17:1, according to Thursday afternoon data compiled by five underwriters – Mirae Asset Securities, Korea Investment & Securities, SK Securities, Samsung Securities, and NH Investment & Securities.

SKIET’s retail deposits topped the previous record set by SK Bioscience Co., which drew 63.6 trillion from individual investors for its IPO last month.

Investors joined the public subscription with high expectations about the company’s growth potential as it is the world’s top-tier wet process EV battery separator maker with a 26.5 percent market share as of last year. The company plans to use the IPO proceeds to expand its separator plant in Poland to meet the burgeoning demand.

SKIET manufactures lithium-ion battery separators (LiBS), a core material for electric vehicle battery production, while developing flexible cover window (FCW), a type of colorless polyimide, as its future growth driver.

Another reason for the popularity is that it was the last IPO, in which investors was allowed to make applications through multiple accounts with different securities firms to raise the possibility of winning more shares, market analysts said.

The IPO price of SKIET was set at 105,000 won apiece, the top end of its guidance price range, which would help it raise 2.2 trillion won on its debut day. Successful subscribers could earn up to 168,000 won per share on the first day of IPO trading if it shoots up by the daily limit of 30 percent to 273,000 won.

SKIET shares are due to be listed on the main Kospi market on May 11.

By Kang Woo-seok and Minu Kim

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