Skip to main content

Advertisement

Advertisement

Business

LG Energy Solution gets preliminary approval for IPO

LG Energy Solution gets preliminary approval for IPO

The logo of LG Chem is seen at its office building in Seoul, South Korea, Oct 16, 2020. (File photo: REUTERS/Kim Hong-Ji)

SEOUL: Battery maker LG Energy Solution (LGES) has received preliminary approval for what has been widely tipped to be South Korea's biggest-ever initial public offering, the Korea Exchange said on Tuesday (Nov 30).

A supplier to Tesla, General Motor and Hyundai Motor, among others, LGES filed for a review of its IPO plans in June.

In October, the wholly owned subsidiary of LG Chem resumed work on its IPO, which was suspended in August due to a lack of clarity regarding the recall costs involving GM's Bolt electric vehicles.

The IPO could raise US$10 billion to US$12 billion, according to publication IFR.

A US$10 billion-US$12 billion IPO would be more than double the biggest ever listing in South Korea, the 2010 IPO of Samsung Life Insurance, which was worth 4.9 trillion won (US$4.39 billion).

The company has mandated KB Securities and Morgan Stanley to lead the proposed deal. Bank of America, Citigroup, Daishin Securities, Goldman Sachs and Shinhan Investment Corp were also mandated as bookrunners.

LG Energy Solution reported an operating loss of 373 billion won (US$313 million) in the July-September quarter versus an operating profit of 169 billion won a year earlier, a regulatory filing showed.

Source: Reuters/ic

Advertisement

Also worth reading

Advertisement