LG Energy Solution Receives Preliminary Approval from Korea Exchange for IPO

UTC by Ibukun Ogundare · 3 min read
LG Energy Solution Receives Preliminary Approval from Korea Exchange for IPO
Photo: Depositphotos

Expectedly, the LG Energy Solution public offering will be the biggest South Korean stock market listing.

South Korean battery maker LG Energy Solution has received preliminary approval for its IPO on the country’s major stock market. LG Energy Solution received approval from the bourse operator Korea Exchange (KRX), bringing the company closer to its market debut. The South Korea-based company had submitted an application to list its shares on the country’s stock market earlier this year.

Korean Exchange Gives LG Energy Solution Preliminary Approval for IPO

Now, KRX said that the battery maker’s IPO application passed the eligibility listing review. Therefore, the company should file the necessary documents with the Financial Supervisory Service next month. Afterward, LG Energy Solution must observe the necessary procedures for the IPO scheduled for early 2022. 

Expectedly, the LG Energy Solution public offering will be the biggest South Korean stock market listing. Estimates revealed that the public offering may generate between 10 to 12 trillion won. 

The company is a major supplier of batteries for global electric vehicle makers like Tesla Inc (NASDAQ: TSLA), General Motors (NYSE: GM), Ford Motor Company (NYSE: F), among others. LG Energy Solution also supplies two of South Korea’s largest car makers Hyundai Motor (OTC: HYMTF) and Kia Corp (OTC: KIMTF). 

Back in June, LG Energy Solution asked for a review of its IPO plans, hoping to debut on the main KOSPI market. These plans, however, were could not progress due to General Motors (NYSE: GM) recalling the cost for battery supplies, causing fire risks. LG reimbursed General Motors about 711 billion won for the Bolt Electric Vehicle batteries defect. According to the battery maker, the recall issue was resolved last month. The resolution stirred up the resumption of the listing process. 

Subsequently, LG Energy Solution has selected KB Securities and Morgan Stanley (NYSE: MS) to lead the proposed IPO deal. Bank of America (NYSE: BAC), Citigroup (NYSE: C), Daishin Securities, Goldman Sachs (NYSE: GS), and Shinhan are to be in charge of the process as book-runners. 

Battery Maker to Generate Funds From Market Debut

LG Energy Solution, a wholly-owned subsidiary of LG Chem, has the stock market’s attention regarding its IPO listing. This is based on the assumption that the company will raise between 10 to 15 trillion won, per market watcher predictions. 

The company’s IPO could more than double the 2010 Samsung’s Life insurance IPO. Samsung’s Life insurance IPO, the biggest listing at the time, was 4.9 trillion won.

The auto battery maker has earlier this month replaced its CEO in a power move. This move is not just to get into high gear its battery business but to also boost its IPO review. 

Business News, IPO News, Market News, News
Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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