LG Energy Solution generates strong interest from institutional investors

LG Energy Solution's two-day institutional investor book building closed Wednesday, with local media reporting the shares offered were more than 1,500 times over subscribed.

The company is scheduled to announce the official subscription rate and finalized IPO price on Friday. The price band for the company’s IPO is between 275,000 won ($230) and 300,000 won, with local media projecting that the price is likely to be set at the upper end of the band.

The two-day book building for retail investors will kick off on Jan. 18 with the company scheduled to be listed on Jan. 27.

Retail investors can subscribe through brokerage firms, including KB Securities, Daishin Securities and Shinhan Investment.

LG Energy Solution aims to raise 12.7 trillion won with a 70.2 trillion won market capitalization, which would make it the third largest company in Korea by market cap, after Samsung Electronics and SK hynix.

Funds raised will be used for facility expansion in Korea, the United States and Europe.

BYJINMIN-JI[jin.minji@joongang.co,kr]