HONG KONG, Jan 3 (Reuters) - Korean battery maker LG Energy
Solution has opened the books to investors to raise up to $10.8
billion in the country's largest initial public offering (IPO),
according to a term sheet seen by Reuters.
The shares will be sold in a price range of 257,000 won to
300,000 won ($216.19-$252.36) apiece to raise between $9.2
billion and $10.8 billion, the term sheet showed.
The IPO will beat the previous South Korean record held by
Samsung Life Insurance's 4.9 trillion won ($4.12 billion)
offering in 2010.
LG Energy Solution (LGES) will be valued at $51 billion to
The company said on Monday it was continuing to "execute
remaining processes to launch a successful IPO".
Cash raised will be mostly used to expand the company's
current production facilities and debt repayment, according to
the term sheet.
LGES is LG Chem Ltd's wholly owned battery
subsidiary and supplies Tesla Inc, General Motor Co
and Hyundai Motor Co, among others.
The company will sell 34 million primary shares and its
parent company will sell 8.5 million secondary shares in the
Demand from investors is expected to be high with the
pricing, due to be finalised on Jan. 14, already likely to be at
the top of the range, according to sources Reuters spoke to last
LGES will start trading on the KOSPI on Jan. 27.
Institutional shareholders will be allotted 55% to 75% of
the shares on offer, depending on the retail subscription and
employee share ownership plans take up rates, the term sheet
The IPO extends the red hot run of Korea's deals market over
the past year.
There was $17.7 billion raised in 2021 IPOs, easily
eclipsing the previous record of $7.6 billion in 2020.
A roadshow between management and investors will start
Monday and run until Jan. 11, the day before books close, the
term sheet showed.
Investor appetite to buy stock is expected to be closely
tied to the booming demand for electric vehicles in major
markets around the world.
Global EV sales, estimated at 2.5 million vehicles in 2020,
are forecast to grow more than 12-fold to 31.1 million by 2030
and account for nearly a third of new vehicle sales, according
to consulting firm Deloitte.
($1 = 1,188.7400 won)
(Reporting by Scott Murdoch, Joyce Lee and Heekyong Yang;
Editing by Shri Navaratnam and Stephen Coates)