According to Reuters, two people familiar with the matter said that SK On, a subsidiary of South Korea’s SK Innovation in the field of electric vehicle batteries, has started a new round of financing, with a target of 2 trillion won to 3 trillion won. South Korean won (1.6 billion to 2.4 billion U.S. dollars, or about 10.76 billion to 16.14 billion CNY).
People familiar with the matter said that the financing will be mainly for international investors, and it is planned to complete financing as early as the end of March.
In December last year, SK On raised 2 trillion won (currently about 10.76 billion CNY) from SK Innovation and 800 billion won (currently about 4.304 billion CNY) from financial investors such as Korea Investment Private Equity. One of the people familiar with the matter, who did not want to be named, said that in this round of financing, the company’s valuation was 22 trillion won (currently about 118.36 billion CNY).
A spokesman for SK On declined to comment on the valuation but said that as part of last year’s fundraising, SK On expects to raise an additional 500 billion won (currently about 2.69 billion CNY) in private equity funds this year. The amount and timing of the latest fundraising The table has not yet been determined.
SK Innovation said on Tuesday that it would focus spending on growing SK on this year, even though the business took longer than expected to become profitable. SK Innovation pointed out that SK On accounted for 15% of the group’s revenue in the fourth quarter.
The battery unit is loss-making in 2022 due to challenges including a global chip shortage, rising raw material prices, rising labor costs, unfavorable exchange rates and delays in ramping up production at factories in Hungary and the United States. The company’s chief financial officer said Tuesday that it expects to be profitable in 2024.
In November, SK Innovation said SK On would eventually conduct an initial public offering (IPO) based on an agreement with financial investors.
