When it comes to going public, LGES and SK On take completely different approaches. While the former is set to go public in January 2022, the latter recently stated that it does not intend to do so.
According to the South Korean news outlet Money Today, LGES is on track to complete public offers by January 19 and will go public on January 27 with a market capitalization of KRW70 trillion (US$58.75 billion).
Since taking office in November, the VP of LGES has stated that the IPO is the most pressing job. By going public, the firm intends to address the rapidly expanding demand for batteries and establish itself as the most competitive battery manufacturer with the highest quality goods.
LGES wants to go public so soon, according to sources, because other battery makers are also developing rapidly, and the business aims to expand its production lines with the money raised through the IPO, which is expected to be around KRW12.75 trillion. They now have manufacturing sites in South Korea, the United States (Michigan), Poland, and China, as well as a joint venture in Indonesia with Hyundai Motor.
SK On, on the other hand, is taking things more carefully, stating that it would not go public until at least 2023, but is nevertheless building production capacity aggressively. SK On has manufacturing facilities in South Korea, China, Hungary, and the United States (Georgia state), and is now constructing its third and fourth factories in the United States.
SK On has received more than 1.2TWh in orders, the most of any battery producer. In 2022, revenue from battery manufacturing is estimated to reach KRW6.5 trillion, allowing the company to generate a profit. According to sources, SK On will mostly rely on current cash flow, monies raised before the IPO, and joint ventures to keep operations running.
Samsung SDI, which is already a publicly traded corporation, has no plans to spin off its battery division. By the end of 2021, the corporation plans to have a cash balance of over KRW2 trillion.
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