SK ecoplant Co., the eco-energy unit of SK Group, said it has begun taking steps for an initial public offering next year by sending requests for proposal to major stock brokerage firms.

After receiving proposals from the brokerage houses, the company said it will select preliminary candidates and finalize next month the firms that will manage its IPO process.

“Based on an economy of scale strategy, we have pulled off several mergers and acquisitions of environmental companies, and have secured our place as South Korea’s biggest environmental business,” said Cho Sung-ok, chief of SK ecoplant’s corporate strategy center.

“As we have successfully entered eco-friendly energy markets such as hydrogen fuel cells and offshore wind power, we expect the company to be valued higher in 2023.”

Starting with Korea’s leading waste management solution provider EMC Holdings in 2020, SK ecoplant has acquired six environmental firms to become the country’s No. 1 in water treatment and industrial waste incineration; No. 2 in medical waste incineration; and No. 3 in waste landfill business.

Last month, SK ecoplant acquired Singapore-based electronics waste management solution provider TES Envirocorp, entering the IT devices and electric car battery recycling and reuse business.

As for the renewable energy business, SK ecoplant set up a joint venture plant called Bloom SK Fuel Cell in Gumi, North Gyeongsang Province, with global fuel cell manufacturer Bloom Energy, and began producing solid oxide fuel cells (SOEC) from October 2020.

In February this year, the SK affiliate successfully demonstrated eco-friendly production of hydrogen through a method called solid oxide electrolysis cell (SOEC) with Bloom Energy for the first time in Korea.

Last year, SK ecoplant invested about 300 billion won in Bloom Energy by acquiring the San Jose, California-based company’s shares to strengthen their strategic partnership.

SK ecoplant also became the largest shareholder of Samkang M&T Co., which produces substructures for wind power turbines.

In January this year, SK ecoplant said it will invest a total of $200 million over four years in a 250-megawatt rooftop solar power project in Vietnam in partnership with Vietnam’s Nami Solar.

“As SK Group’s leading company in environmental, social and corporate governance that realizes circular economy, we will set up an efficient IPO strategy in consideration of financial market situations in Korea and abroad,” Cho said, adding that the company aims to be Asia’s top environmental firm through the IPO.

By Kim So-hyun (sophie@heraldcorp.com)