IPO attracts record investors from across the world
Ever since LG Energy Solution was spun off from South Korea’s largest chemical company LG Chem in late 2020, the former was expected to draw big investment in its initial public offering (IPO).
But its IPO set for late this month appears to draw bigger-than-expected interests both at home and abroad.
Earlier this month, more than 1,980 institutional investors took part in the book-building process so that their total order size amounted to $13 trillion won.
More than 20 percent of them were overseas outfits.
This week, millions of retail investors also placed their orders, which approached $100 billion to break a record set by SK IE Technology early last year.
As soon as the company goes public, its market value would reach $60 trillion to become the country’s third most-valuable corporation behind Samsung Electronics and SK hynix.
LG Energy Solution CEO Kwon Young-soo appears not to be content with the impressive debut on the stock market as its global rival CATL has a market capitalization of more than $200 billion.
“We will take over CATL,” Kwon told an online press conference early this month. “The gap between the two companies will be narrowed down the road.”
Kwon said its cumulative order backlog is more than $210 billion.
As of last November, Seoul-based business tracker SNE Research said that CATL’s market share was 32 percent, followed by LG Energy Solution with 21 percent.
“CATL’s market share is underpinned by the Chinese government’s supports. Hence, it remains to be seen how the market share changes in the near future,” Prof. Kim Pil-soo at Daelim University said.
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