LG Energy Solution targets $10.8 billion in S Korea’s biggest-ever IPO
Korean battery maker LG Energy Solution has opened the books to investors to raise up to $10.8 billion in the country’s largest ever initial public offering (IPO), according to a term sheet seen by Reuters.
The shares will be sold in a price range of 257,000 won to 300,000 won ($216.19-$252.36) apiece to raise between $9.2 billion and $10.8 billion, the term sheet showed.
It will be the largest IPO in South Korea to date, beating the previous record held by Samsung Life Insurance’s 4.9 trillion won ($4.12 billion) IPO in 2010.
LG Energy Solution will be valued at $51 billion to $59 billion.
The company did not provide any further comment when contacted by Reuters.
LGES is LG Chem Ltd’s wholly owned battery subsidiary and supplies Tesla Inc, General Motor Co and Hyundai Motor Co, among others.
The company will sell 34 million primary shares and its parent company, LG Chem Ltd, will sell 8.5 million secondary shares in the IPO.
Institutional shareholders will be allotted 55% to 75% of the shares on offer, depending on the retail subscription and employee share ownership plans take up rates, the term sheet said.
Cash raised in the IPO will be mostly used to expand the company’s current production facilities and debt repayment, according to the term sheet.
($1 = 1,188.7400 won)
(Reporting by Scott Murdoch and Joyce Lee; Editing by Himani Sarkar & Shri Navaratnam)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
