By Kwanwoo Jun
LG Energy Solutions has begun taking orders from investors as it seeks to raise up to $10.8 billion in what is South Korea’s largest initial public offering to date.
LG Chem Ltd. Affiliate, one of the largest players in the global electric-vehicle battery market, plans to sell 42.50 million shares at KRW257,000-KRW300,000 each, according to a term sheet seen by The Wall Street Journal.
At the top end of the price range, the company could raise KRW12.750 trillion, eclipsing the record KRW4.9 trillion that Samsung Life Insurance Company raised in its IPO in 2010.
The term sheet shows that the implied market capitalization of LG Energy Solutions is expected to be up to $59 billion following the proposal.
The retail subscription will open from January 18 and the company’s shares will start trading on the Korean Stock Exchange from January 27.
LG Energy Solutions, a major EV battery supplier for Tesla Inc., General Motors Co. and Hyundai Motor Co., is raising capital to expand its business amid rising demand.
As per the term sheet, the company plans to use the IPO proceeds to boost capital expenditure, repay debt and meet working capital requirements.
Morgan Stanley, BofA Securities and Citigroup are among those advising on the planned share sale.
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