Tesla supplier L&F's precursor unit begins IPO process
Jeong-Cheol Bae
Oct 18, 2023 (Gmt+09:00)
Electric vehicle battery assembly line (Courtesy of Getty Images) L&F Co., a South Korean electric vehicle battery materials supplier to Tesla Inc., has embarked on a process to list its subsidiary in the local stock market, tapping KB Securities Co. as a lead manager, banking sources said on Wednesday.
JH Chemical Industry Co., the subsidiary, produces precursors for battery materials. It posted 46 billion won ($34.1 million) in revenue and 1.2 billion won in operating profit last year.
The company is led by Chief Executive Hur Jae-hong, a fourth-generation member of the GS Group family owners. He is also the chairman of the board at L&F and the CEO of electronics parts maker Seronics Co., L&F’s parent company.
L&F owns a 67.4% stake in JH Chemical, while Seronics Co. has a 25.4% stake.
Once JH Chemical goes public, L&F will make aggressive investments in the precursor unit to develop a battery recycling business as a new growth engine, industry sources said.
The Korean stock market expects more battery materials providers to go public later this year or early next year.
EcoPro Materials Co., a precursor subsidiary of EcoPro Group, will have a bookbuilding process for institutional investors on Oct. 30 in preparations for the IPO.
Shinsung ST Corp., a battery parts unit under home appliance components maker Shinsung Delta Tech Co., is scheduled to be listed on the Kosdaq on Oct. 19.
LS Materials, a battery materials unit within LS Cable & System, received the Korea Exchange’s approval for its preliminary Kosdaq IPO review last month and is continuing the listing process.
Write to Jeong-Cheol Bae at bjc@hankyung.com Jihyun Kim edited this article.