The world’s second-biggest EV battery maker will offer 42.5 million shares next month with a price between 257,000 won and 300,000 won per share, according to a securities registration form filed with the Korea Exchange late Tuesday.
If the top end of the range is reached, the company’s market cap would hit 70.2 trillion won, potentially vaulting it into the No 3 position on the benchmark Kospi index after Samsung Electronics and SK Hynix.
It would also mark South Korea’s biggest IPO, more than doubling Samsung Life Insurance’s 4.9 trillion won in 2010. Seoul-based online game developer Krafton fell short of the record in August, raising 4.3 trillion won.
Shares of LG Chem, parent of LG Energy Solution, jumped more than 5% in Wednesday morning trading on the expectation that the deal would boost the company’s future value. LG Chem owns a 100% stake in LG Energy Solution and plans to sell 8.5 million shares in the IPO.
“With this IPO we will preemptively cope with rising demand in the secondary battery market,” said LG Energy Solution CEO Kwon Young-soo in a statement, referring to rechargeable batteries used for EVs.
“We will become the world’s top secondary battery maker by continuing our research and development for top-class quality and competitiveness in the global market.”
LG Energy ranked as the world’s second-largest EV battery maker with a 23.8% market share for the first three quarters this year, according to SNE Research. China’s CATL topped the list with a 31.2% share, while Japan’s Panasonic came in third at 13.3%.
With the proceeds, LG Energy plans to expand production capacity at its facility in the South Korean city of Cheongju as well as launch joint ventures with automakers in North America, Europe and China.
In October, LG Energy and automaker group Stellantis agreed to set up a joint venture to produce battery cells and modules for the North American market.
The announcement came six months after LG Energy and General Motors said they would invest more than US$2.3 billion to build another battery cell manufacturing plant in the US state of Tennessee.