This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:48 p.m. on Aug. 20, 2026.
Lotte Innovate(286940) extended the deadline for the initial public offering (IPO) of its electric-vehicle charging subsidiary, EVCIS, by one year. The move came after it agreed with financial investor (FI) Stick Alternative to postpone the originally set IPO deadline. While the tightening of duplicate-listing regulations had an impact, observers said the decision more likely reflected the slowdown in the electric-vehicle charging market's growth and delays in improving EVCIS's profitability.
According to the investment banking (IB) industry on the 20th, Lotte Innovate and Stick Alternative recently agreed to amend their contract to extend EVCIS's IPO deadline by one year from the original schedule. As a result, the deadline for a qualified initial public offering (Q-IPO) for EVCIS was pushed back from early 2027 to 2028.
EVCIS is a manufacturer and operator of electric-vehicle chargers that Lotte Innovate (then Lotte Information & Communication) acquired in 2022. At that time, Lotte Innovate signed a shareholders' agreement while attracting investment from Stick Alternative. Under the agreement, Lotte Innovate can purchase part of the equity in EVCIS held by Stick Alternative, and conversely, if listing fails by the IPO deadline, Stick Alternative can sell all or part of its stake to Lotte Innovate.
The direct backdrop to the IPO deadline extension is the tougher rules on duplicate listings. With Lotte Innovate already listed on the main board, listing subsidiary EVCIS would likely stir controversy over duplicate listings of a parent and its subsidiary. In July, the Financial Services Commission and the Korea Exchange (KRX) prepared detailed criteria that, in principle, restrict duplicate listings of subsidiaries to protect the rights of common shareholders of listed parent companies, allowing exceptions only under limited conditions.
However, some say stricter duplicate-listing rules are not the only reason for the delay. As the "chasm" of slower-than-expected EV adoption persists and competition among charging operators intensifies, EVCIS's profitability improvements have also been delayed. This appears to have informed both sides' agreement to extend the deadline, given the judgment that in the current market environment it would be difficult to secure an appropriate corporate valuation and pull off an IPO.
Despite top-line growth, EVCIS is struggling to improve profitability. Revenue steadily increased from 48.9 billion won in 2022 to 80.4 billion won in 2023, 88.6 billion won in 2024, and 90.6 billion won in 2025. In contrast, operating losses were 2.8 billion won in 2022, 2.6 billion won in 2023, 13.3 billion won in 2024, and 6.0 billion won in 2025, marking four consecutive years of deficits. Sales have grown, but the company has yet to prove its ability to generate profit.
The share performance of comparable companies is also a negative factor for EVCIS's IPO. Electric-vehicle charging infrastructure company Chaevi(0011T0) closed at 5,030 won on the 20th. That is 59.1% below its offering price of 12,300 won. Its market capitalization, which was about 575.5 billion won at the offering price, has now shrunk to about 236.0 billion won. With the market's valuation bar for the charging sector lowered, analysts said EVCIS has also found it harder to win a high corporate valuation during the IPO process.
Another variable is that if EVCIS fails to go public within the deadline, Lotte Innovate could face a real financial burden. Lotte Innovate recognizes the present value of its obligation to repurchase its own equity instruments under a put option as a financial liability. As of the end of June, related long-term accounts payable stood at 44.8841 billion won. At the same time, Lotte Innovate's cash and cash equivalents were 127.4 billion won, so there is no immediate liquidity concern. However, if the put option is exercised, it may have to spend more than one-third of its current cash on buying equity.
The market is also watching the IPO of Everon, a slow-charging EV company seeking to become the second to test the market after Chaevi. Everon filed for a preliminary review for a KOSDAQ listing with the Korea Exchange (KRX) on the 13th of last month. Having turned profitable last year with 5.5 billion won in operating profit, it could become a listing case of an EV charging company that has secured profitability. Whether Everon pulls off its IPO is expected to serve as another gauge of investment sentiment and valuation for the EV charging sector, which cooled after Chaevi's listing.