Chaevi to Complete IPO... FIs Support Listing Instead of Exercising Put Options

FIs Including Stick Invest to Support IPO Completion Without Exercising Put Options Even if Offering Price Is Low

Led by Stick Invest, the major financial investors (FIs) of Chaevi have decided to support the company in completing its initial public offering (IPO) instead of exercising their put options (stock purchase rights). This move is a strategic decision to aim for an increase in corporate value after the listing, rather than a short-term exit.

According to the investment banking (IB) industry on April 20, the main FIs, including Stick Invest, have agreed to support Chaevi in completing its IPO. They appear to have determined that Chaevi, the No. 1 domestic charge point operator (CPO) for rapid charging infrastructure, can stably raise its corporate value after listing, rather than pursuing a short-term exit immediately after the IPO.

By making their commitment to complete the IPO clear, the main FIs are also expected to significantly alleviate concerns in the market about potential overhang (a large volume of shares that could be sold). Chaevi’s key investors have already declared in the securities registration statement that they will not exercise their put options even if the offering price falls below a certain threshold. In addition to setting a six-month lock-up period for their shares from the listing date, the major investors, including Stick Invest, have also established additional safeguards such as restrictions on selling shares in the market after the lock-up. As a result, the likelihood of a large volume of shares being released to the market after the listing is expected to be significantly limited.

Previously, Chaevi finalized the IPO offering price at 12,300 won, which is at the lower end of the indicative price range. The total number of shares offered is 9 million, amounting to a total of 110.7 billion won. Even though there was confirmed demand from institutional investors, the company chose to lower the pricing burden. This shows that the company prioritized smoothly completing the listing process over ensuring IPO success. In fact, a total of 751 institutions participated in the institutional investor demand forecast ahead of Chaevi’s IPO, recording a competition ratio of about 55 to 1. Among overseas institutional investors, 70% participated at the upper end or above the indicative price band.

Meanwhile, Chaevi’s public subscription for the IPO is scheduled to take place on April 21. The lead underwriters are KB Securities and Samsung Securities, while the co-managers are Daishin Securities and Hana Securities. An IB industry official stated, "By finalizing the offering price at the lower end, the company has proactively reflected short-term market uncertainties, while also securing room for a stock price increase after the listing."

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