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LG Electronics files for $1.5 billion IPO in India

Published: 08 Dec. 2024, 14:21

JIN EUN-SOO
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The logo of LG Electronics is seen at its booth during The Semiconductor Exhibition 2024 at the Coex convention center in Seoul, Korea, Wednesday, Oct. 23, 2024. [AP/YONHAP]

LG Electronics kicked off the official process of going public in India by submitting draft papers of its Indian subsidiary's initial public offering (IPO) with the Securities and Exchange Board of India (SEBI) for review on Friday.

LG Electronics India filed its draft red herring prospectus (DRHP), preliminary paperwork that outlines details about the company's business, financials and risks to potential investors before the IPO, with the SEBI, proposing selling up to 101.8 million shares, which constitute 15 percent of its own shares.

This IPO is expected to raise as much as $1.5 billion.

The review, which generally takes three months, will be followed by confirmations of its offering price and date before an approval of the RHP. If the process goes smoothly, LG Electronics India is expected to go public on the local bourse in the first half of next year.

India is a promising market for home appliances due to its low penetration rate. LG Electronics built on a strong foothold in the fledgling market by raising 198 billion won ($139.4 million) in net profit in the first half of this year, a 27 percent year-over-year jump.

It advanced into the market in 1997 by building its local entity.

BY JIN EUN-SOO [[email protected]]