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May 10, 2021updated 12 May 2021 6:27pm

SK IE shares to soar on market debut

South Korean electric vehicle (EV) battery materials manufacturer SK IE Technology Company (SKIET) is scheduled to make its debut on South Korea's main stock exchange, the KOSPI, on Tuesday after the company was spun off from local energy group SK Innovation Company.

Early price movements will be followed with interest after SKIET attracted a record KRW80.9trn (US$73bn) in deposits from retail investors during its two-day subscription period in late April.

The initial public offering (IPO) share price was set at KRW105,000 (US$94), which helped raise KRW2.2trn (US$2bn). Local market analysts expect the shares to open at twice the IPO price and continue to increase throughout the day. Local analysts said they expect the company value to approach KRW20trn (US$18bn).

Separators account for up to 20% of the overall cost of lithium-ion batteries and are crucial in preventing explosions and fires during the charging process.

The company has been investing heavily to expand production capacity to increase its exposure to the fast-growing global EV vehicle market. Last month it opened a new battery separator plant in China and is currently building additional capacity in the US and Poland.

Its main client is its parent company SK Innovation, one of the world’s largest EV battery producers which supplies EV batteries for leading vehicle manufacturers such as Tesla, Volkswagen group, Hyundai Motor Group and General Motors. SK Innovation still owns 62% of the company’s shares.

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