EV battery-maker LG Energy Solution raises $10.6 billion in S. Korea massive IPO

• LGES shares open at 597,000 won ($496), up from 300,000 won ($249) in the IPO.

• The shares close at 505,000 won, 68 % higher than the IPO price 

LG Energy Solution Ltd. (LGES) shares soared 68 % on their first day of trading after the electric vehicle (EV) battery maker raised around 12.8 trillion won ($10.6 billion) in South Korea's bumper initial public offering.

LGES shares began at 597,000 won ($496), up from 300,000 won ($249) in the IPO. However, the stock dropped as much as 25% in early trade.

Even at the lowest intra-day trading level, LGES has become South Korea's second most valuable firm behind Samsung Electronics Co Ltd, with a market worth of more than 105.3 trillion won ($87.62 billion).

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The company, which slipt out from LG Chem Ltd, controls more than 20% of the worldwide EV battery industry. Among its customers are Tesla Inc (NASDAQ: TSLA), General Motors Co (NYSE: GM), and Volkswagen AG.

LGES shares closed at 505,000 won, 68 % higher than the IPO price but 15 % lower than Thursday's open in a market that declined 3.5 %.

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S. Korea’s IPO market 

According to statistics published by Market Insight, The Korea Economic Daily's capital market news site, public offerings for 114 firms this year raised a record-high sum of almost 20.5 trillion won.

The amount is nearly double the previous high of 10.9 trillion won set in 2010. Excluding special purpose acquisition companies, 88 firms have completed their listings in 2021 as of today (SPACs.) 

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After LGES IPO, Hyundai Engineering Co., a subsidiary of Hyundai Motor Group, plans to go public next month.

Through an IPO, the business hopes to raise between 926.4 billion won and 1.21 trillion won. Based on the anticipated IPO price range, its market capitalization might reach 6.05 trillion won.

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($1 = 1,204.02 South Korean won)

Inputs from Reuters

Picture Credits: ET Auto