Initiated the sole LG Energy Solution listing process… Expecting 100 trillion won

LG Energy Solutions, which was spun off from LG Chem’s battery business division, has started IPO work. In the market, the enterprise value is estimated at around 100 trillion won. It is expected to be the largest language in IPO history. ▶See page A1 of this magazine on January 10th

According to the investment banking (IB) industry on the 12th, LG Energy Solutions sent a bid proposal (RFP) to major securities companies on the afternoon of that day to select a listed supervisor. The schedule is more than several months ahead of the market’s expectations. Sending an RFP is the first step in the listing process.

The company will receive a proposal by the morning of the 21st, select a host company through a non-face-to-face presentation, and start preparing for the competition. The industry expects to select 5-6 companies, including 3 foreign securities companies and 2 domestic securities companies, as the size of the public offering is very large.

The approval can be obtained in the first half of the year by requesting a preliminary examination for listing on the Korea Exchange after receiving a designation audit in the first quarter after selecting the organizer. Listing is possible as early as September-October.

It is known that LG Energy Solution is not only listed in Korea, but also listed on the NASDAQ in the US. However, the IB industry is highly likely to choose to list in Korea in the aftermath of Corona 19. This is because it takes a lot of time for legal review work, local due diligence, and overseas road shows when entering the NASDAQ. The cost of maintaining the listing is also high. Hanwha General Chemical, which promoted listing on the NASDAQ last year, also recently turned to listing in Korea.

Stock prices estimate the corporate value of LG Energy Solutions at least KRW 50 trillion. According to an analysis, it will reach a maximum of 100 trillion won as the rechargeable battery industry grows rapidly. This is because the market cap of CATL, the largest electric vehicle battery company in China, which is a rival of LG Energy Solutions, has exceeded 159 trillion won. Analysts estimate that LG Energy Solution’s sales exceed CATL and its profitability is improved.

Investment Bank (IB)In the industry LGEnergy solution IPOThrough the 10It is expected to secure more than trillion won in funding. LGWith the funds secured, Energy Solutions expands production bases at the forefront of the electric vehicle market in the US, Europe, China, etc.R&D) Plan to increase investment.

An official from the battery industry said, “The electric vehicle battery industry is expanding factories to respond to rapidly increasing demand R&D A huge investment is necessary,” he said. “The competitiveness of K battery companies also depends on their financing ability.”
Reporter Jeon Ye-jin/Choi Man-soo [email protected]

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