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Samsung SDI share issue signals hope for tariff-battered battery stocks

Published: 25 May. 2025, 15:36

YOON SO-YEON
[email protected]

Samsung SDI headuquarters [SAMSUNG SDI]

As U.S. tariffs loom over the manufacturing sector, an oversubscribed share issue by Samsung SDI points to the battery subsidiary's potential to weather the uncertainty.

Samsung SDI expects to raise 1.65 trillion won ($1.21 billion) when the new shares are listed on June 13, exceeding its initial target, according to a press release Sunday. The company issued 11,821,000 shares at a price of 140,000 won apiece, a 12.6 percent discount from Friday's closing price of 160,200 won.

The demand represents a 101.96 percent subscription rate.

The shares were allocated to both Samsung SDI’s employee stock ownership association and existing shareholders holding subscription rights.

Of the total, 40,736 shares were generated as fractional shares — a portion of a share — during the subscription process. They will be available for public subscription on May 27 and 28.

Samsung SDI's 46-phi cylindrical battery [SAMSUNG SDI]

“The success of this share sale was expected earlier on in the process, when Samsung Electronics took an active part in the process, and early subscription for employees quickly sold out,” Samsung SDI said.

Samsung Electronics' board had agreed to subscribe to 120 percent of its allocated shares, the maximum limit. The advance subscription rate from the employee association also well exceeded 100 percent.

Samsung SDI said its stock has been undervalued and a long-term positive outlook has been cast for technology including energy storage systems and electric vehicles.

“Samsung SDI plans to use the roughly 1.65 trillion won raised through the offering to invest in its joint venture with General Motors in the United States, expand production capacity at its Hungary plant and fund facilities for all-solid-state batteries,” the company said.

BY YOON SO-YEON [[email protected]]