Record initial public offering scheduled for Jan. 27
As far as the initial public offering (IPO) is concerned, LG Energy Solution is shattering the country’s records in convincing fashions throughout this month.
The Seoul-headquartered company drew up to $97 billion in deposits from more than 4 million retail investors this week to set a record.
Midway through this month, a total of 1,988 institutional investors placed the combined order of $13 trillion won, also a record. Out of them, 1,536 were Koran institutions, and 452 came from overseas countries.
In addition, the IPO price was set at $250 per share, the upper end of the price range set between $220 and $250.
“All the institutional investors who took part in the book-building came up with share prices that topped $250 per share,” an LG Energy Solution official said.
As a result, its market capitalization would approach $60 billion on Day 1, only tracking two companies of Samsung Electronics and SK hynix on the Korean stock market.
Analysts point out even the top-end price is underrated.
“The price is undervalued, and it could jump by 30 percent so that its market share would near $80 billion,” NH Investment & Securities analyst Ju Min-woo said.
That means that LG Energy Solution would surpass SK hynix, the world’s second-largest manufacturer of memory chips, to become the No. 2 player in Korea.
As of last November, LG Energy Solution’s market share was just above 20 percent, chasing China’s CATL, which accounted for more than 30 percent of the market.