LG Energy Solution opens books for South Korea’s biggest IPO

South Korean battery maker LG Energy Solution has opened its books for an initial public offering in the country with an aim to raise up to $10.8 billion in what is South Korea’s biggest IPO.

LG Energy’s shares will be sold in a price range of $216.19-$252.36 (257,000 won to 300,000 won) apiece to raise between $9.2 billion and $10.8 billion, as per the term sheet.

LG Energy’s IPO will beat Samsung Life Insurance’s $4.12 billion (4.9 trillion won) IPO in 2010.

LG Energy Solution (LGES) will be valued at $51 billion to $59 billion.

In a statement on Monday, LGES said it was continuing to “execute remaining processes to launch a successful IPO”.

Funds raised in the IPO will be channeled towards company’s current production facilities and debt repayment, states the term sheet.

LGES is LG Chem Ltd’s wholly owned battery subsidiary. It supplies Lithium-ion batteries to Tesla Inc, General Motor Co, Hyundai Motor Co among others.

LGES will sell 34 million primary shares while its parent company will sell 8.5 million secondary shares in the IPO.

According to sources, demand for LGES’s shares are high; pricing of the shares are scheduled to be finalised on January 14, and are likely to be at the top of the range.

LGES will start trading on the KOSPI on January 27.

As per the term sheet of the IPO, institutional shareholders will be allotted 55% to 75% of the shares on offer, depending on the retail subscription and employee share ownership plans take up rates.

($1 = 1,188.7400 won)

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