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SK Shieldus to utilize IPO proceeds to pursue cross-border M&A

SK Shieldus to utilize IPO proceeds to pursue cross-border M&A

SK Shieldus, the cyber security service venture of the third-largest conglomerate in South Korea, has reportedly unveiled plans to use the proceeds from its upcoming IPO (initial public offering) to pursue cross-border M&A (mergers and acquisitions).

This move comes as SK Shieldus, which was previously the Korean arm of ADT, the American home security service provider, gears up for an IPO in May. The supposed float is anticipated to rise over ₩ 1.05 trillion (USD 840.8 million) by listing approximately 27.1 million shares on the market. The shares will float between ₩31,000 (USD 24.31) to ₩38,800 (USD 30.44) apiece.

As per repots, cloud computing security companies would be a crucial target for a planned investment. This would enable the country’s number one security service company to venture into international markets, according to Park Jin-hyo, the Chief Executive Officer of SK Shieldus.

In a statement, Park mentioned that the company is proactively seeking cross-border mergers and acquisitions and intends to secure rapid growth momentum by acquiring a cloud computing security firm.

Nearly half of the overall proceeds will be assigned to Macquarie, the company's second-largest stakeholder, as it offloads some of its share in the company. Meanwhile, approximately 20% of the proceeds will be utilized to funnel the acquisition plan of SK Shieldus.

The company is slated for the book-building procedure with institutional investors on May 3rd and May 4th and a stake offering for retail investors on May 9th and May 10th. It is expected that te firm would commence trading on the Korea Exchange on May 19th.

Morgan Stanley, Credit Suisse, and NH Investment & Securities are lead underwriters of the agreement.

SK Shieldus is committed to cybersecurity as well as physical security services. The company’s operating profit jumped almost fivefold last year to ₩121.9 billion (USD 95.59 million) in comparison to the year before.

Currently, the company is owned by SK Square, a spinoff of telecom company SK Telecom, and Macquarie Group. It would become the first firm among the subsidiaries of SK Square to go public.

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.