LG Energy Solution IPO price tops range; raises $10.8 billion -sources

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FILE PHOTO: Illustration shows smartphone with LG Energy Solution's logo displayed
FILE PHOTO: LG Energy Solution’s logo is pictured on a smartphone in front of a stock graph displayed in this illustration taken, Dec. 4, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

January 14, 2022

By Scott Murdoch and Heekyong Yang

SYDNEY (Reuters) -South Korean battery maker LG Energy Solution (LGES) has priced its initial public offering (IPO) at the top of its indicative range, raising 12.8 trillion won ($10.76 billion), two people with direct knowledge of the matter told Reuters on Friday.

Shares of LGES were priced at 300,000 won, compared with a range of 257,000 to 300,000 won per share announced in a regulatory filing last month.

“We cannot comment on the details of pricing of our IPO at the moment and we plan to announce the pricing via regulatory filing once finalised,” said a spokesperson at LGES.

LGES is scheduled to announce the pricing later on Friday.

LGES, LG Chem Ltd’s battery subsidiary, supplies Tesla Inc, General Motor Co and Volkswagen AG, among other automakers.

The pricing values the company at 70.2 trillion won, making it South Korea’s third most-valuable company after Samsung Electronics Co Ltd and SK Hynix Inc.

The listing, which will take place on Jan. 27 according to term sheets, will be the biggest in the country after Samsung Life Insurance Co Ltd’s 4.8 trillion won IPO in 2010.

The IPO comes as global battery-powered electric vehicle (EV) sales, estimated at 2.5 million units in 2020, are forecast to grow more than 12-fold to 31.1 million by 2030 and account for nearly a third of new vehicle sales, according to consulting firm Deloitte.

Analysts said they are closely watching LGES’ IPO and how its stock trades later this month to gauge the health of the 2022 IPO market.

South Korea saw its hottest IPO market on record last year. More than 20 companies went public on the main KOSPI market, raising about 17 trillion won, beating the previous record of 8.8 trillion won raised in 2010, according to the Korea Exchange.

(Reporting by Scott Murdoch in Sydney and Heekyong Yang in Seoul; Editing by Jacqueline Wong and Christopher Cushing)

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