LG New Energy launches listing process and plans to raise more than 57.3 billion yuan in IPO

News on the afternoon of June 9th, Beijing time, according to the Korea Economic News, South Korean battery manufacturer LG Energy Solution Ltd. (LG Energy Solution Ltd., hereinafter referred to as “LG New Energy”) officially launched the listing process, and the valuation may reach 100 trillion won (approximately 573.3 billion yuan), is expected to set the record for the largest IPO in South Korea.


Among the South Korean companies that plan to go public in the second half of this year, at least 10 companies are valued at more than 1 trillion won. It is expected that the scale of new shares issued in South Korea will hit a record high this year.


according to news from the Korean investment banking industry, LG New Energy applied to the Korean Stock Exchange for preliminary review for listing on the securities market on the same day. It is expected to go public in the third quarter of this year, and the fundraising scale may exceed KRW 10 trillion (approximately RMB 57.3 billion).


LG’s new energy is expected to break the Korean insurance company, Samsung recorded life (Samsung Life Insurance), becoming the largest IPO on the stock market in Korea. Samsung Life went public in 2010 and raised 4.89 trillion won.


Last December, LG new energy split up by LG Chem (LG Chem Ltd.), the production of batteries and energy storage devices (ESS), for electric vehicles, smart phones, laptops, tablet PCs.


LG New Energy’s sales and operating profit in the first quarter reached 4.25 trillion won (approximately 24.392 billion yuan) and 341 billion won (1.955 billion yuan), respectively. With the rapid growth of the global electric vehicle market and the flood of orders, the company has begun to achieve profitability.


According to market research firm SNE Research, as of the end of April this year, LG New Energy’s share of the global electric vehicle market was 21.5%, ranking second in the world, second only to Chinese battery manufacturer CATL, with a market share of 32.5%.


Currently, Krafton, the developer of the global popular game PlayerUnknown’s Battlegrounds, the pharmaceutical company HK inno.N (formerly CJ Healthcare), the shipyard Hyundai Heavy Industries, Lotte Rental, a leasing company under Lotte Group, South Korea’s largest Internet bank KakaoBank, and payment giant Kakao Pay In the pre-trial stage.


Analysts predict that the scale of new shares issuance in the second half of the year is expected to reach 20 trillion won (approximately RMB 114.7 billion). Coupled with rights issue financing, the total amount of funds raised by the Korean stock market this year will approach 40 trillion won (229.3 billion yuan).

Alexander focuses on breaking news stories and ensuring we offer timely reporting on some of the latest stories released through market wires. He has previously spent over 5 years as a trader in us stock market and is now semi-retired. Now he works for investingbizz.com specializing in quicker moving active shares with a short term view on investment opportunities and trends. He covers financial sector news.

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