LG Energy Solution expects to raise ￦12.75 trillion through IPO

[YONHAP]

LG Energy Solution expects to raise a maximum of 12.75 trillion won ($10.9 billion) through its initial public offering (IPO) scheduled for January at the earliest.

The wholly owned battery-making subsidiary of LG Chem said Tuesday it has submitted a securities registration statement to the Financial Services Commission with a goal of going public at the end of January 2022.

LG Energy Solution will newly offer 34 million shares and its parent LG Chem will offer 8.5 million existing shares. Prices are set between 257,000 won and 300,000 won per share.

Based on the plan, LG Energy Solution expects to raise a maximum of 12.75 trillion won, which would take the company’s market capitalization to 70.2 trillion won.

The price will be finalized on Jan. 14, according to the company.

The company said it will use the capital to expand the manufacturing capacity at its Ochang factory in North Chungcheong, as well as at its overseas factories in North America, Europe and in China.

“The latest IPO will enable LG Energy Solution to preemptively respond to the secondary battery market that is expected to grow exponentially,” CEO Kwon Young-soo said.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]