SK On, the electric vehicle battery subsidiary of SK Innovation, is set to raise approximately KRW 1 trillion (US$740 million) through a rights offering. The company will issue 18,031,337 common shares, representing 3.7% of its total issued shares, at KRW 55,459 per share. The capital raised will support SK On’s efforts to expand in the increasingly competitive EV battery market. Payment for the new shares is scheduled for October 15, with share certificates to be delivered the following day.
The offering will be conducted via a third-party allocation method, with financial institutions including Korea Investment & Securities, Shinhan Bank, Shinhan Investment Corp., and KB Securities acquiring shares through special purpose companies (SPCs). A price return swap (PRS) mechanism is being used, allowing for risk hedging based on future stock price movements.
While SK On has faced profitability challenges due to temporary stagnation in EV demand, the company remains optimistic about long-term growth in the EV sector. In a separate move, SK Innovation announced plans to increase its stake in SK enmove from 60% to 70%, further consolidating its control over the group.
