LG Energy Solution seeks mega IPO on Kospi in H2

South Korean battery maker LG Energy Solution is speeding up to make a stock market debut on the nation’s main bourse Kospi in the second half of this year, according to investment banking sources Wednesday.

The company submitted a preliminary application for an IPO to the Korea Exchange on Tuesday. Market insiders say the firm may begin the share sale as early as September in line with its timetable.

While KB Securities and Morgan Stanley are underwriting the IPO deal, the size of the offering and the target price band per share have not been decided yet. But it is anticipated to become the biggest deal in the local IPO market history, the sources said.

It may raise around 10 trillion won ($8.97 billion) through the upcoming book building and retail tranche. The battery maker’s estimated market value is as high as 100 trillion won as well, they said.

LG Energy Solution is a wholly owned subsidiary of LG Chem. The battery materials maker and petrochemical firm approved the split-off of its battery business in December last year. LG Energy’s consolidated sales came to 1.46 trillion won but its consolidated net loss reached 451.8 billion-won last year, according to the company’s regulatory filing.

The LG Chem’s subsidiary said that it looks to invest on battery facilities overseas in US and Europe with the IPO proceeds to cope with a growing demand in electric vehicle market.

“We will continuously secure our business competitiveness and raise our shareholders’ value by going public,” an LG Energy Solution official said. “We are looking ahead to take a further leap to become the world’s No. 1 energy solution company.”

By Jie Ye-eun (yeeun@heraldcorp.com)