SEOUL, Jan 19 (Reuters) - Retail investors bid for a record
114 trillion won ($96 billion) worth of shares in the IPO of
South Korean battery maker LG Energy Solution (LGES), adding to
the frenzy for a piece of the biggest public offering in the
Some 4.4 million individual investors ensured the retail
portion of the initial public offering (IPO) was oversubscribed
nearly 70 times at the end of the two-day bidding period on
Wednesday, according LGES.
The demand beat the previous record of battery material
maker SK IE Technology Co Ltd (SKIET), which drew 81
trillion won of public subscriptions last year.
Last week, LGES priced the offering at top of the indicative
marketing range to raise $10.8 billion, making it South Korea's
biggest and Asia's third-largest IPO.
LGES continues the trend of robust demand for IPOs from
South Korean retail investors - known as "ants" - as government
stimulus efforts to bolster the economy after the coronavirus
crisis have flooded markets with cash.
"I decided to subscribe to LGES IPO shares after seeing
reports of the LGES IPO attracting lots of bids from retail
investors. I also thought I might be missing out on this
opportunity to make quick money if I don't bid for this," said
Lee, an office worker in Seoul.
LGES, which commands more than 20% of the global electric
vehicle battery market and supplies Tesla Inc, General
Motors Co and Volkswagen AG among others, had
set aside about 25% of the total shares on offer for retail
bidders, according to Reuters calculations.
The retail demand comes after the company last week
attracted bids worth about $12.8 trillion, also a record, from a
total of 1,988 domestic and foreign institutional investors, its
The company is expected to list on Jan. 27.
The IPO price values LGES at about 70.2 trillion won ($60
billion) and will make it South Korea's third most-valuable
company after Samsung Electronics Co and SK Hynix
Some South Korean brokerages saw a dramatic jump in the
number of newly created accounts by retail investors as a result
of the demand.
KB Securities, one of the main bookrunners on the deal along
with Morgan Stanley, said it saw an almost 200% increase in the
number of newly created accounts between Jan. 1 and Jan. 10,
compared with the same period a month ago.
($1 = 1,192.9000 won)
(Reporting by Heekyong Yang and Scott Murdoch
Editing by Louise Heavens and Mark Potter)