SK On, a major South Korean battery maker, has sought advice from private equity giants Carlyle and BlackRock as it hopes to raise about $3 billion in pre-listing funds, domestic media reported on Thursday.
Kim Jun, chief executive of SK Innovation, SK On’s parent, said he expected the initial public offering would not take place until after 2025.
The funding was first reported by Maeil Business Newspaper, citing the investment banking industry. The newspaper said Carlyle Group and SK On had been negotiating detailed terms.
SK On, Carlyle Group and BlackRock were not immediately available for comment.
While SK Innovation had been aiming for its loss-making battery unit to break even by the fourth quarter of this year, the company said in April that SK On’s turnaround could take longer.
Kim blamed surging raw material prices and the prolonged global chip shortage.
Spun out of SK Innovation last year, SK On, which has a client roster including Ford, Hyundai and Volkswagen, makes batteries in South Korea, US, China, Hungary and Turkey.
- Reuters, with additional editing by George Russell