SK On-funding
SK On raises additional US$400 mln in pre-IPO funding
SEOUL, June 8 (Yonhap) -- South Korean battery maker SK On Co. has attracted an additional US$400 million from a foreign investor, the latest in a round of funding as it steps up to prepare for an initial public offering (IPO), its parent company said Thursday.
The board of SK Innovation Co., approved the investment agreement it and SK On signed with a Singapore-based company, the energy unit under SK Group said, without revealing the name of the investor.
The latest funding raises the total SK On has secured from financial investors to 4.97 trillion won ($3.81 billion), a 24 percent increase from its initial target of 4 trillion won.
SK On has drawn 1.2 trillion won from a consortium of local investors, 2 trillion won from SK Innovation, $800 million from another consortium led by private equity fund, MBK Partners, and $144 million from SNB Capital, a subsidiary of Saudi National Bank.
The funds will help SK On, the battery split-off of SK Innovation, accelerate efforts to pool financial resources before it launches the process for its market debut.
SK Innovation said earlier it is preparing for the IPO, but it won't take place for another couple of years.
SK On posted 3.3 trillion won in sales in the first quarter, equivalent to more than 40 percent of its entire 2022 sales of 7.6 trillion won. It expects to generate more than 15 trillion won in revenue for this year.
SK On, which remained in the red, is aiming for a turnaround amid an aggressive overseas push. It is targeting an increase in its annual production capacity to 220 gigawatt hours (GWh) by 2025, from 88 GWh in 2022.
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