이 기사는 2022년 02월 14일 08시04분 thebell에 표출된 기사입니다

South Korea’s SK Ecoplant is seeking to raise 500 billion won ($418 million) in a pre-initial public offering (pre-IPO) placement to use the proceeds to further boost its growth.

SK Ecoplant is receiving letters of intent from potential investors for its pre-IPO funding, according to industry sources on Thursday. It has invited multiple financial investors without hiring an adviser. The company plans to conduct due diligence on the potential investors later this month.

SK Ecoplant has transformed itself into an environmental management services provider after the company, formerly SK Engineering & Construction, bought waste management firm EMC Holdings from Affirma Capital for 1.05 trillion won in 2020.

Last year, it made four bolt-on acquisitions of Daewon Green Energy, Saehan Environment, and DDS, totaling 400 billion won. The deals have helped SK Ecoplant to become a comprehensive waste management services provider.

SK Ecoplant has decided to raise funds to secure money for additional mergers and acquisitions (M&A) and future growth engines. The company is widely expected to continue to make additional bolt-on acquisitions to establish a full chain of waste management services business.

“EMC Holdings also had grown to a comprehensive waste management services provider through several bolt-on acquisitions,” said an industry source, adding, “(SK Ecoplant) is expected to grow in size to establish a value chain that encompasses the domestic environmental management business.”

SK Ecoplant is reportedly considering ways to enter the overseas market through EMC Holdings, such as collaboration with global companies and M&As.

Potential investors are paying attention to SK Ecoplant’s waste management capabilities. “Potential investors are attracted to the fact that the deal will provide environmental, social, and governance (ESG) investment opportunity as SK Ecoplant provides a variety of environmental management services including incineration and recycling,” said the source.

SK Ecoplant has invited a limited number of private equity firms to discuss the deal. The company plans to conduct due diligence in 2-3 weeks after receiving letters of intent from multiple financial investors.

An official at SK Ecoplant said that the company asked for investment proposals but nothing has been decided yet. (Reporting by Seon-young Kim)