Home Energy company LG Energy Solution targets $ 10.8 billion IPO

LG Energy Solution targets $ 10.8 billion IPO

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The LG Energy Solution logo is pictured on a smartphone in front of the stock chart displayed in this illustration taken on December 4, 2021. REUTERS / Dado Ruvic / Illustration

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HONG KONG, Jan. 3 (Reuters) – Korean battery maker LG Energy Solution has opened the books to investors to raise up to $ 10.8 billion in the country’s largest initial public offering (IPO), according to a conditions sheet viewed by Reuters.

The shares will be sold in a price range of 257,000 won to 300,000 won ($ 216.19- $ 252.36) each to raise between $ 9.2 billion and $ 10.8 billion, according to the term sheet.

It will be South Korea’s largest IPO to date, breaking the previous record held by Samsung Life Insurance’s 4.9 trillion won ($ 4.12 billion) IPO in 2010. .

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LG Energy Solution will be valued between $ 51 billion and $ 59 billion.

The company made no further comment when contacted by Reuters.

LGES is the wholly owned battery subsidiary of LG Chem Ltd and supplies Tesla Inc, General Motor Co and Hyundai Motor Co. among others.

The company will sell 34 million primary shares and its parent company LG Chem Ltd will sell 8.5 million secondary shares on the IPO.

Institutional shareholders will be allocated 55% to 75% of the shares offered, depending on the subscription rates of individuals and employee share ownership plans, according to the term sheet.

The money raised during the IPO will primarily be used to expand the company’s current production facilities and debt repayment, according to the list of conditions.

($ 1 = 1,188.7400 earned)

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Reporting by Scott Murdoch and Joyce Lee; Editing by Himani Sarkar & Shri Navaratnam

Our Standards: Thomson Reuters Trust Principles.