* Battery material maker IPO comes amid global EV shift
* Shares close below debut price, still 47% above IPO price
* SKIET ends first day of trade valued at around $9.8 bln
* Drag on NASDAQ EV stocks likely affected debut -analyst
SEOUL/HONG KONG May 11 (Reuters) - SK IE Technology Co Ltd
(SKIET) ended its first day of trade down 26.4% from
its debut price but still far above its initial public offering
(IPO) price, giving the battery material maker a market value of
11 trillion won ($9.83 billion).
The South Korean firm began Tuesday trade at double its IPO
price at 210,000 won before almost immediately falling well
beyond the 1.2% decline in the KOSPI benchmark index.
Analysts said the 154,500 won close, 47% above the IPO
price, should be viewed as a reasonable price based on SKIET's
fundamentals rather than as a failed listing.
The decline came after electric vehicle (EV) stocks were
sold off on Wall Street overnight - including major Tesla Inc
which lost 6.8% - during a broader tech rout, setting a
negative tone, said Clepsydra Capital founder Sanghyun Park.
SKIET supplies separators - an essential battery component -
to EV battery makers including Tesla partner Panasonic Corp
"The latest bashing of the EV stocks on the NASDAQ seems to
be affecting SKIET's market debut," Seoul-based Park, who
publishes on Smartkarma, told Reuters.
Retail demand for local IPOs was the main force behind
expectations for bullishness on SKIET stock, he said.
"But with another EV sector cooling-down like we saw
yesterday in the U.S., even local retail investors have had a
hard time maintaining the enthusiasm on SKIET whose business is
directly correlated to the global EV sector," said Park.
Turnover on SKIET shares amounted to 1.91 trillion won,
accounting for 9% of the day's total for the main board.
The listing comes as automakers worldwide increasingly add
and even replace traditionally powered cars with new-energy
alternatives such as fully battery-powered electric vehicles.
The trend pushed revenue from battery separators to 56% of
SKIET's total sales last year, accelerating from 19% in 2018.
SKIET priced its IPO last month at 105,000 won per share,
the top of its indicative price range. Parent SK Innovation Co
Ltd said the IPO's institutional book was almost
2,000 times covered - the largest-ever for South Korea.
Chief Executive Rho Jae-sok has said the manufacturer will
use IPO proceeds for capital expenditure topping 800 billion won
annually for the next few years.
The firm operates factories in South Korea and China. In
March, it said it would spend about 1.13 trillion won building
two plants in Poland.
SKIET's first-day stock market performance mirrored that of
Hybe Co Ltd - formerly Big Hit Entertainment, and
manager of K-Pop boy band BTS - whose share price also doubled
on debut in October before ending negative.
($1 = 1,119.5900 won)
(Reporting by Heekyong Yang in Seoul and Scott Murdoch in Hong
Kong; Additional reporting by Jihoon Lee; Editing by Christopher