SYDNEY/SEOUL (Reuters) – South Korean battery maker LG Energy Solution (LGES) raised $10.8 billion in its preliminary public providing (IPO), attracting file demand for a deal in South Korea, the corporate mentioned on Friday.
LGES shares have been priced at 300,000 gained every, on the high of a spread introduced in a regulatory submitting final month, elevating 12.8 trillion gained ($10.76 billion). [nL1N2SS0GL]
The itemizing, set to happen on Jan. 27, would be the biggest in the nation after Samsung Life Insurance Co Ltd’s 4.8 trillion gained IPO in 2010.
The pricing values LGES at 70.2 trillion gained, making it South Korea’s third most-valuable firm after Samsung Electronics Co Ltd and SK Hynix Inc.
LGES, LG Chem Ltd’s battery subsidiary, provides Tesla Inc, General Motor Co and Volkswagen AG, amongst different automakers.
A complete of 1,988 home and international institutional buyers positioned bids, LGES’ submitting confirmed, valuing whole bids at file $12.8 trillion.
LGES mentioned the institutional ebook for the IPO was 2,023 occasions coated – the biggest ever for an IPO in South Korea.
LGES expects to supply 34 million new shares in the IPO and dad or mum LG Chem plans to supply 8.5 million present shares.
The dad or mum firm will personal 81.8% of LGES after the itemizing.
The IPO comes as world battery-powered electrical automobile (EV) gross sales, estimated at 2.5 million items in 2020, are forecast to develop greater than 12-fold to 31.1 million by 2030 and account for almost a 3rd of latest automobile gross sales, in accordance with consulting agency Deloitte.
Analysts mentioned they’re intently watching LGES’ IPO and the way its inventory trades later this month to gauge the well being of the 2022 IPO market.
South Korea noticed its hottest IPO market on file final 12 months. More than 20 firms went public on the primary KOSPI market, elevating about 17 trillion gained, beating the earlier file of 8.8 trillion gained raised in 2010, in accordance with the Korea Exchange.
(Reporting by Scott Murdoch in Sydney and Heekyong Yang in Seoul; Additional reporting by Jihoon Lee and Joyce Lee; Editing by Jacqueline Wong, Christopher Cushing and Jane Merriman)
