Electric vehicle charging infrastructure operator (CPO) Chaevi has begun the full-fledged process for an initial public offering.
According to the investment banking industry on the 4th, Chaevi submitted a securities registration statement to the Financial Supervisory Service that day, kicking off the offering process. It comes about eight months after it filed for a preliminary listing review with the KOSDAQ Market Division of the Korea Exchange (KRX) in July last year.
Chaevi plans to conduct book-building for institutional investors from the 23rd to the 27th and proceed with a public subscription in April. If all goes as planned, it will list on the KOSDAQ market in mid-next month.
Chaevi had been adrift for more than seven months after stumbling at the screening threshold of the Korea Exchange (KRX). Concerns mounted that the company's growth and profitability were uncertain due to a lull in EV demand (chasm).
In particular, the fact that Chaevi pursued a listing under the "unrealized profit special case (Tesla requirement)" was behind the prolonged exchange review. The Korea Exchange (KRX) convened a listing committee on the 27th of last month and approved the preliminary listing review.
Through this listing, Chaevi plans to offer a total of 10 million shares. The desired offering price band is 12,300–15,300 won per share, with total proceeds estimated at 123 billion–153 billion won.
Post-listing market capitalization is set at 729.7 billion won based on the top end of the price band. It selected European and Chinese EV charging solution companies, including those in the Netherlands and Norway, which are considered advanced EV countries, as peers.
Chaevi plans to use the proceeds raised to strengthen competitiveness in its charging infrastructure business. Through the third quarter of last year on a consolidated basis, it posted 55.7 billion won in revenue and an operating loss of 29.1 billion won.
Choe Young-hoon, CEO of Chaevi, said, "EV charging infrastructure is an essential platform that connects energy and mobility," adding, "The faster the transition to EVs accelerates, the more important it will become."
Meanwhile, KB Securities and Samsung Securities are the joint lead underwriters for Chaevi's listing. In addition, Daishin Securities and Hana Securities are participating as co-managers.