Analysis-LG Energy Solution's IPO likely to be priced at $11 billion top end
$Tesla (TSLA.US)$ $General Motors (GM.US)$ South Korean battery maker LG Energy Solution (LGES) will likely price its IPO at the top of its indicative range at around $11 billion, two sources told Reuters, as institutional investors bet on booming demand for electric vehicles.
That pricing would make LGES, a wholly-owned unit of LG Chem Ltd that supplies to firms including TSLA , General Motors and Hyundai Motor, the biggest listing ever in South Korea.
LGES said last week it expected to offer 34 million new shares in an indicative range of 257,000 to 300,000 won per share, which would raise around 12.8 trillion won ($10.9 billion) at the top end when the IPO is scheduled to be priced on Jan. 14.
"LGES' IPO is drawing the hottest demand from institutional investors compared to any other South Korean IPOs this year," said an investment banker with direct knowledge.
With just 14.5% of shares being offered to institutional and retail investors, prospective buyers would need to bid big to get an allocation, the banker added.
With just 14.5% of shares being offered to institutional and retail investors, prospective buyers would need to bid big to get an allocation, the banker added.
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