LG Energy Solution, World's Second Largest EV Battery Maker, Set To Raise $10.7 billion In South Korea's Biggest IPO

by India Infrahub - Jan 15, 2022 04:04 AM
LG Energy Solution, World's Second Largest EV Battery Maker, Set To Raise $10.7 billion In South Korea's Biggest IPO LG Energy
Snapshot
  • LG Energy Solution (LGES), a South Korean battery-maker, is expected to raise 12.75 trillion won ($10.7 billion) this month in what will be the country's largest-ever initial public offering (IPO).

    The company, the world's second-biggest electric vehicle (EV) battery maker, said that it will use the proceeds from the IPO to expand domestic and overseas production.

LG Energy Solution (LGES), a South Korean battery-maker, is expected to raise 12.75 trillion won ($10.7 billion) this month in what will be the country's largest-ever initial public offering (IPO).

In a regulatory filing, the world's second-biggest electric vehicle (EV) battery maker, said that as many as 1,988 institutions have subscribed to its offering of 41.5 million initial issues, with all of the investors proposing to buy at the highest price range. LGES is offering 34 million new shares and nearly 8 million existing shares held by parent firm LG Chem in the IPO (Till now, LGES was a100% fully-owned subsidiary of LG Chem). The company had set the share price in the range of 275,000 won to 300,000 won (roughly $230-$250). The shares were oversubscribed by more than 2,023 times.

The IPO will catapult the company as the third most valuable firm on the Korea Stock Exchange after Samsung Electronics and SK hynix.

In Dec 20, LG Chem officially set up LG Energy as a wholly-owned subsidiary by moving its battery business to the new entity.

LG Energy, currently the world's second-largest EV battery maker, enjoys a 23.8% market share. China's CATL is the market leader with a 31.2% share, while Japan's Panasonic came in third at 13.3%.

The company said that it will use the proceeds from the IPO to expand domestic and overseas production.

It proposes to expand production capacity at its facility in the South Korean city of Cheongju. The company, which currently operate a plan in Michigan as a joint venture with General Motors, is building two others in US - Ohio and Tennessee. Its European plant is based in the Polish city of Wroclaw.

LG Energy is also partnering with global carmaker Stellantis N.V. to build a battery plant in North America.

It is also is seeking to establish a joint battery plant in the United States with Japanese automaker Honda Motor.

Get Swarajya in your inbox everyday. Subscribe here.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Comments
Get Swarajya in your inbox everyday. Subscribe here.
Advertisement

Latest Articles

    Artboard 4Created with Sketch.