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LG Energy Solution Gets Preliminary Approval for IPO

The LG Chem logo is seen at its office building in Seoul, South Korea on October 16, 2020. REUTERS / Kim Hong-Ji / File Photo

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SEOUL, Nov. 30 (Reuters) – Battery maker LG Energy Solution (LGES) has received preliminary approval for what has been widely regarded as South Korea’s largest initial public offering, the Stock Exchange said on Tuesday. Korea.

Supplier to Tesla Inc (TSLA.O), General Motor Co (GM.N) and Hyundai Motor Co (005380.KS), among others, LGES requested a review of its IPO plans in June.

In October, the wholly owned subsidiary of LG Chem Ltd (051910.KS) resumed work on its IPO, which was put on hold in August due to a lack of clarity regarding the costs of recalling electric vehicles Bolt from GM. Read more

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

$ 10 billion to $ 12 billion IPO would be more than double the largest ever listing in South Korea, the 2010 Samsung Life Insurance IPO (032830.KS), which was worth 4.9 trillion won ($ 4.39 billion).

The company has mandated KB Securities and Morgan Stanley to lead the proposed transaction. Bank of America, Citigroup, Daishin Securities, Goldman Sachs and Shinhan Investment Corp have also been appointed as bookkeepers.

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

($ 1 = 1,190,7,800 won)

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Report by Heekyong Yang; edited by Louise Heavens and Jason Neely

Our Standards: Thomson Reuters Trust Principles.


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