LG Energy Solution gets preliminary approval for IPO

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

SEOUL (Reuters) - 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.

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

In October, the wholly owned subsidiary of LG Chem Ltd 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 $10 billion to $12 billion, according to publication IFR.

A $10 billion-$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 ($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 ($313 million) in the July-September quarter versus an operating profit of 169 billion won a year earlier, a regulatory filing showed.

($1 = 1,190.7800 won)

(Reporting by Heekyong Yang; editing by Louise Heavens and Jason Neely)

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights


Next In Tech News

In global 5G race, European Union is told to step up pace
Facebook trumpets massive new supercomputer
Marketplace bug sees at least $1 million of NFTs sold below market price
Facebook parent Meta says its new AI supercomputer will be world's fastest
Can this dating app help put an end to the phenomenon of being ‘ghosted’?
Three U.S. states, D.C. sue Google over location-tracking
Dutch watchdog fines Apple 5 million euros for failure to comply on app store
SPAC linked to Trump's venture outperforms others in sector
Panasonic to invest $700 million to produce new batteries for EVs - Nikkei
Scientists in SG develop computer program that can detect those at higher risk of depression

Others Also Read