LS Materials raises pre-IPO funding to ramp up ultracapacitor biz
South Korea’s LS Materials Ltd., the ultracapacitor making subsidiary of LS Cable & System Ltd., attracted 22 billion won ($18.5 million) from strategic partner Keistone Partners to bolster eco-friendly portfolio before it goes public.
LS Materials was spun off from LS Mtron, the industrial machinery unit of LS Group. LS Cable & System would remain the largest shareholder of LS Materials by owning 55 percent stake, while Keistone Partners becomes the second with 45 percent.
Ultracapacitors, also known as supercapacitors, is energy storage devices similar to a battery. They are becoming a crucial part of the environmentally-friendly movement because they are used to stabilize supply of power generated from intermittent renewable energy sources such as solar and wind.
LS Materials supply ultracapacitors which power wind turbines’ pitch controller, a system managing the pitch for each blade. The ultracapacitor business accounts for more than 40 percent of its revenue, and the rest of the sales are generated by supplying heavy equipment, transportation and automobile materials.
According to market researcher Global Industry Analysts, the global ultracapacitor market is estimated to reach $12.6 billion in 2027 from $3.2 billion in 2020.
Keistone Partners in 2019 bought a 49 percent stake in LS Alsco, the aluminum business subsidiary separated from LS Cable. LS Alsco plans to increase production of electric vehicle battery frames to strengthen EV business. LS Alsco is a fully-owned subsidiary of LS Materials.
LS Cable and Keistone are planning on initial public offering (IPO) of LS Materials in 2022 or 2023, according to market sources.
LS Materials is estimated to post 10.2 billion won in operating profit on a consolidated basis and sales of 130 billion won for 2021. Its operating profit is predicted to grow to 18 billion won and revenue 190 billion won in 2023.
Maeil Business Newspaper / By Kang Doo-soon, Park Chang-young and Choi Mira