UPDATE 2-SKIET shares plunge after debuting at double IPO price
(Adds share movement, milestones)
SEOUL/HONG KONG May 11 (Reuters) - Battery material maker SK IE Technology Co Ltd (SKIET) saw its stock drop on Tuesday, after debuting at double the price set during an initial public offering (IPO) which set a South Korean record for institutional demand.
SKIET's shares opened at 210,000 won, valuing the manufacturer at about 15 trillion won ($13.44 billion).
However, the stock dropped soon after market open by as much as 22.9%, compared with a 0.9% fall in the KOSPI benchmark share price index.
The listing comes as automakers worldwide increasingly add and even replace traditionally powered cars in their line ups with new-energy alternatives such as fully battery-powered electric vehicles.
SKEIT supplies separators, a key component in lithium-ion batteries, to battery makers including parent SK Innovation Co Ltd, Samsung SDI Co Ltd, LG Energy Solution Ltd and Japan's Panasonic Corp.
Revenue from the material last year made up 56% of SKEIT's total sales, accelerating from 19% in 2018.
Last month, the firm priced South Korea's biggest IPO in four years at 105,000 won per share, the top of its indicative price range. SK Innovation said the IPO's institutional book was almost 2,000 times covered - the largest-ever for South Korea.
Chief Executive Rho Jae-sok has said SKIET will use money raised through the sale of new shares for capital expenditure, with such spending topping 700 billion to 800 billion won annually for the next few years.
SKIET operates factories in South Korea and China. In March, it said it would spend about 1.13 trillion won building two plants in Poland.
($1 = 1,116.4300 won) (Reporting by Heekyong Yang in Seoul and Scott Murdoch in Hong Kong; Additional reporting by Jihoon Lee; Editing by Christopher Cushing)
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