SK Innovation to raise $900M via rights offering

SK logo shown at SK office building in Jongno District, central Seoul, where SK Innovation is headquartered [NEWS1]

SK Innovation will raise 1.2 trillion ($900 million) via a rights offering, according to the company’s regulatory filing Friday.

SK Innovation plans to spend the funds on expanding its facilities as well as ramping up research and development (R&D) capabilities.

"We are executing large-scale investments in green business, which includes the battery business," SK Innovation Vice Chairman Kim Jun said in a letter to shareholders on Friday.

"We have decided on a rights offering to develop new businesses such as small modular reactors and hydrogen and ammonia, and secure related R&D capabilities, in a bid to speed up the transition to a green business," the letter added.

According to a regulatory filing, the company will issue 8.19 million common shares at a price of 143,800 won per share. The stock will be sold to the firm’s shareholders.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]