KPS Launches IPO for 'Battery Recycling' Segiritec... Signs Underwriting Agreement with KB Securities

Inside the Segiritec factory. / Photo by KPS

KPS is promoting the initial public offering (IPO) of its battery recycling specialized subsidiary, Segiritec. On the 23rd, it signed a lead underwriting agreement with KB Securities, aiming to enter the KOSDAQ market next year. Kiwoom Securities will serve as the joint lead manager.

According to KPS, Segiritec selected KB Securities, which aims to be the leader in equity capital market (ECM) underwriting performance, as the lead manager. This securities firm has previously successfully managed IPOs of major companies such as DS Danseok, LS Materials, Doosan Robotics, Sungil Hightech, and LG Energy Solution.

KB Securities emphasized that Segiritec "will advance as a comprehensive battery recycling specialized company based on profitability and research and development (R&D)." It added, "Based on its long-standing know-how in the core business of recycled materials and a stable supply network for waste batteries, it is the only company capable of leading not only the ternary (NCM) electric vehicle battery sector but also the LFP (lithium iron phosphate) market, with which it is collaborating technologically with the Korea Institute of Geoscience and Mineral Resources."

Although a 'newcomer to IPO,' Segiritec is evaluated to have secured both stable sales growth and a high operating profit achievement rate simultaneously. Segiritec recorded sales and operating profits of 88.4 billion KRW and 4.2 billion KRW in 2021, and 86.6 billion KRW and 5.8 billion KRW in 2022, respectively. Last year, operating profit is expected to grow rapidly thanks to capacity (capa) expansion and process efficiency improvements.

This year, Segiritec's target sales and operating profit in the recycled materials sector are over 110 billion KRW and 14 billion KRW, respectively. Furthermore, once the pretreatment facilities for NCM and LFP battery recycling are completed within the idle factory, visible achievements in new business areas are expected to increase.

Kim Minhong, CEO of Segiritec, stated, “To ensure a successful IPO, we will collaborate in various ways with KB Securities as the lead manager and Kiwoom Securities as the joint lead manager.” He added, “In our core business, we will further improve production yield to maintain growth, and in the newly emerging electric vehicle battery recycling sector, we will actively pursue early market share acquisition.” He also mentioned, “As this is the first year of our leap to become a comprehensive battery recycling company, we will also pursue a company name change.”

This content was produced with the assistance of AI translation services.