SK Lubricants is set to go to market with a $1 Billion IPO.
In South Korea’s biggest share sale in three years, SK Lubricant is planning a $1 billion flotation. Following a sluggish year for IPOs in the country, South Korea is now expecting a number of large offerings over the next few months.
Previously, a number of IPOs on the South Korean stock exchange have failed; its biggest IPO since Korea Aerospace, the country’s largest cable TV company Hellovision sold slightly less than the 18.9 million shares it had planned.
Given that background, SK is hoping its heritage will be enough to attract potential shareholders. SK Lubricants manufactures base oil and is wholly owned by South Korea’s largest oil refiner SK Innovation. Parent company, SK Group, is the third largest conglomerate in South Korea; there are 92 subsidiary and affiliate companies which share the SK brand.
The company has hired a heavyweight team of financial advisers, including Citigroup, Credit Suisse and Samsung Securities, to manage the offering and is making the assumption that approximately 25% of the company’s shares will be sold, although a date has not yet been set for the flotation.