Daesung Electric eyes IPO by next year

[THE INVESTOR] Daesung Electric, automotive component arm of LS Group, is pushing for an initial public offering by next year, the company said on Sept. 12.

Daesung said it will apply for preliminary approval to pursue an IPO on the country’s main bourse KOSPI by end of November. It has selected Mirae Asset Financial Group as the lead manager for the deal and shared plans to go public by first half of next year.

Once Daesung’s market debut is completed, the company plans on building three new overseas plants to meet the growing demand of global automakers.

At the moment, Daesung operates three plants in Qingdao and Wuxi in China, and Tamil Nadu in India. The company plans to add three new facilities in Mexico, India and China in the future.

Daesung Electric, established in 1973, became part of LS Mtron, machinery arm of LS Group, in 2008. It is the top maker of switches and relays for automobiles in Korea, with its major clients including Hyundai Motor, Kia Motors, Ssangyong Motor, General Motors and Nissan.

The company posted 808 billion won (US$724.62 million) in revenue and 36.3 billion won in operating profit last year.

It expects to raise revenue to 1.5 trillion won by 2020 through the IPO, Daesung Electric CEO Lee Cheol-woo said.

By Ahn Sung-mi (sahn@heraldcorp.com)