Security Firm SK Shieldus Joins Car-Sharing Startup SOCAR in Filing for Korean IPOs

Security solution provider SK Shieldus and car-sharing platform SOCAR have both filed initial paperwork for an initial public offering (IPO) on the main Korea Composite Stock Price Index (Kospi), according to reports and the stock exchange operation Korea Exchange.

Launched in 2000, SK Shieldus is a security subsidiary of Korea’s largest wireless carrier, SK Telecom. SK Square, the investment spinoff of SK Telecom, holds a 63.1% stake in SK Shieldus, according to Pulse News in Korea.

Ahead of its filing, SK Shieldus appointed new external directors as well as audit committee members in order to bring more attention to its ESG management. It also revamped its audit system, according to the report.

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Launched in 2011, SOCAR is Korea’s first car-sharing platform. The company earned unicorn status with a valuation of 1 trillion won ($829 million) in 2020. It’s central shareholder SOQRI, along with others, holds a 40.52% stake in the firm.

SOCAR converted 100% of its convertible preferred stocks and convertible bonds into common stocks. The company also tapped former chairman of Hana Financial Group Kim Seung-yoo to head its audit committee in a move to transform its internal management and compliance systems before going for an IPO.

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With an operating profit of 1.1 trillion won ($912 million), SK Shieldus also recorded a net profit of 10.9 billion won ($9 million) in the third quarter of 2021. NH Investment & Securities, JP Morgan and Credit Suisse Group AG are the lead managers for its IPO.

SOCAR’s operating profit was 21.6 billion won ($17.9 million) with a net loss of 23.4 billion won ($19.4 million) in the third quarter last year. Mirae Asset Financial Group is the lead manager for the IPO.

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SOCAR operates as an eco-friendly car-sharing community that enables people to share vehicles with others traveling the same route. The company raised $18 million in a 2015 funding round led by Bain Capital, which remains one of South Korea’s biggest funding deals to date.

The service has over 1.7 million registered users; 50,000 use the service every month. SOCAR processes 80,000 transactions per month — more than one car booking every 30 seconds, according to the report.