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LG Energy Solution Prices Record-Setting IPO in South Korea

01/14/2022 | 03:07am EDT

By Kwanwoo Jun

LG Energy Solution Ltd. has priced its $10.74 billion initial public offering at the top end of its guidance range, launching South Korea's largest-ever share sale.

The company, which supplies electric-vehicle batteries to Tesla Inc., General Motors Co. and Hyundai Motor Co., is selling shares at 300,000 won ($252.79) each. It is looking to raise KRW12.750 trillion, which would comfortably eclipse the previous IPO record of KRW4.9 trillion set by Samsung Life Insurance Co. in 2010.

The IPO pricing implies a market capitalization at KRW70.2 trillion that would make LG Energy the third-biggest listed company in South Korea.

The Jan. 11-12 bookbuilding showed strong investor demand, with the order book for institutional investors 2,023 times oversubscribed, LG Energy said.

Some analysts think that even at $59.15 billion, LG Energy's valuation looks low given how closely it trails the world's top battery maker, Contemporary Amperex Technology Co., in terms of market share. The Chinese company was recently valued at $213 billon.

LG Energy plans to invest KRW8.8 trillion of the IPO proceeds to boost its electric-vehicle battery output, Chief Executive Kwon Young-soo said earlier this week.

Mr. Kwon aims to raise annual EV battery production capacity to 400GWh by 2025 and overtake CATL.

LG Energy and parent LG Chem Ltd. plan to sell a combined 42.5 million shares, including 34 million new and 8.5 million existing shares.

The company plans to start taking orders from retail investors on Jan. 18-19 before listing on Jan. 27.

BofA Securities, Citigroup and Morgan Stanley are advising LG Energy on the share sale.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

01-14-22 0307ET

Stocks mentioned in the article
ChangeLast1st jan.
CITIGROUP INC. -3.39% 49.32 Delayed Quote.-18.33%
CONTEMPORARY AMPEREX TECHNOLOGY CO., LIMITED -0.84% 419 End-of-day quote.-28.74%
GENERAL MOTORS COMPANY -5.96% 35.83 Delayed Quote.-38.89%
HYUNDAI CORPORATION -2.02% 19450 End-of-day quote.15.77%
HYUNDAI CORPORATION HOLDINGS CO., LTD. -0.38% 13000 End-of-day quote.9.24%
HYUNDAI MOTOR COMPANY 0.00% 185500 End-of-day quote.-11.24%
LG CHEM, LTD. 1.39% 512000 End-of-day quote.-16.75%
LG CORP. -0.13% 75200 End-of-day quote.-7.05%
MORGAN STANLEY -2.70% 80.69 Delayed Quote.-17.80%
ON SEMICONDUCTOR CORPORATION -4.56% 55.83 Delayed Quote.-17.80%
SAMSUNG ELECTRONICS CO., LTD. 0.74% 68100 End-of-day quote.-13.03%
SAMSUNG LIFE INSURANCE CO., LTD. -0.45% 66900 End-of-day quote.4.37%
TESLA, INC. -6.80% 709.81 Delayed Quote.-32.83%
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Analyst Recommendations on LG CHEM, LTD.
More recommendations
Sales 2022 48 976 B 38,5 B 38,5 B
Net income 2022 2 655 B 2,09 B 2,09 B
Net Debt 2022 7 524 B 5,92 B 5,92 B
P/E ratio 2022 14,3x
Yield 2022 2,12%
Capitalization 37 895 B 29 801 M 29 801 M
EV / Sales 2022 0,93x
EV / Sales 2023 0,85x
Nbr of Employees -
Free-Float 59,6%
Duration : Period :
LG Chem, Ltd. Technical Analysis Chart | A051910 | KR7051910008 | MarketScreener
Technical analysis trends LG CHEM, LTD.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 28
Last Close Price 512 000,00 KRW
Average target price 804 750,00 KRW
Spread / Average Target 57,2%
EPS Revisions
Managers and Directors
Hak Cheol Shin Chairman & Chief Executive Officer
Okdong Son President
Dong-Seok Cha Chief Financial Officer & Director
Ki-Soo No CTO & President-Executive Board
Young-Ho An Independent Director
Sector and Competitors