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LG Energy Solution gets preliminary approval for IPO – Metro US

LG Energy Solution gets preliminary approval for IPO

FILE PHOTO: The logo of LG Chem is seen at
FILE PHOTO: The logo of LG Chem is seen at its office building in Seoul

SEOUL (Reuters) – Battery maker LG Energy Solution (LGES) has received preliminary approval for what has been widely tipped to be South Korea’s biggest-ever initial public offering, the Korea Exchange said on Tuesday.

A supplier to Tesla Inc, General Motor Co and Hyundai Motor Co, among others, LGES filed for a review of its IPO plans in June.

In October, the wholly owned subsidiary of LG Chem Ltd resumed work on its IPO, which was suspended in August due to a lack of clarity regarding the recall costs involving GM’s Bolt electric vehicles.

The IPO could raise $10 billion to $12 billion, according to publication IFR.

A $10 billion-$12 billion IPO would be more than double the biggest ever listing in South Korea, the 2010 IPO of Samsung Life Insurance, which was worth 4.9 trillion won ($4.39 billion).

The company has mandated KB Securities and Morgan Stanley to lead the proposed deal. Bank of America, Citigroup, Daishin Securities, Goldman Sachs and Shinhan Investment Corp were also mandated as bookrunners.

LG Energy Solution reported an operating loss of 373 billion won ($313 million) in the July-September quarter versus an operating profit of 169 billion won a year earlier, a regulatory filing showed.

($1 = 1,190.7800 won)

(Reporting by Heekyong Yang; editing by Louise Heavens and Jason Neely)

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