LG Energy Solution jumps on debut to become South Korea’s second most valuable

LG Energy Solution jumps on debut to become South Korea's second most valuable

Spun out of LG Chem Ltd, the firm commands more than 20% of the global electric vehicle (EV) battery market. It supplies Tesla Inc, General Motors Co and Volkswagen AG among others.
Its trading debut will set the tone for upcoming IPOs in South Korea as retail investors – known as “ants” – flock to the stock market with liquidity aided by the government’s stimulus policy during the COVID-19 pandemic.

LG Energy Solution Ltd (LGES) hopped in its exchanging debut on Thursday after South Korea’s greatest ever IPO attracted bids worth $13 trillion, making it the nation’s second-most valuable  organization. LGES shares opened at 597,000 won versus an initial public offering (IPO) cost of 300,000 won. In any case, the offers fell as much as 25% in early exchanging. LGES has become South Korea’s second most-valuable organization after Samsung Electronics Co Ltd with a market valuation coming to more than 105.3 trillion won ($87.62 billion), even at the lowest intra-day exchanging level.

“It is quite tricky to predict LGES’ first-day trading performance, mainly because of the market’s recent volatility caused by various factors such as investor concerns over the Federal Reserve and how quickly it will move,” said Park Jung-hoon, fund manager at HDC Asset Management in Seoul.
More than 4.4 million retail investors bid a record 114 trillion won to subscribe to shares in the IPO, Asia’s largest equity fund raising since China’s Alibaba Group Holding Ltd raised $12.9 billion in its Hong Kong secondary listing in 2019.

Nearly 2,000 foreign and domestic institutional investors lodged bids worth about $12.8 trillion.
More than 20 companies went public on South Korea’s main board last year, raising about 17 trillion won, nearly double the previous record of 8.8 trillion won raised in 2010, according to bourse operator Korea Exchange.

LGES’ market value is dwarfed by the $208 billion of bigger Chinese rival Contemporary Amperex Technology Co Ltd’s (CATL) . However, LG Chief Executive Kwon Young-soo has pointed to a 260 trillion won battery order backlog to highlight the company’s growth potential.
Analysts caution LGES will still likely face growing competition as Chinese peers expand into the global market and more automakers seek to develop their own EV battery technologies.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
AirPods are compatible with Android
AirPods are compatible with Android
This is a bit different from how pairing works on an iPhone or iPad, where you simply open your AirPods case and tap connect. On an Android device, you’ll ...
For $20 Billion, RBI Sells Biggest Dollar Sales in a Month on Spot Markets
Remittances abroad through RBI’s LRS hit an all-time high in FY22
As Covid-related restrictions eased in various countries in FY22, international travel picked up, resulting in India’s spending $6.91 billion on travel, ...
A Rising Tide In Q1 North American Phone Shipments, Motorola and Google Show Significant Improvements
A Rising Tide In Q1 North American Phone Shipments, Motorola and Google Show Significant Improvements
Apple expanded its lead over Samsung as the latter was able to increase its first-quarter shipments by only 1% in North America. The South Korean-based ...
Bosch Ltd net profit drops 27% to Rs 350.5 crore in March quarter
Bosch Ltd net profit drops 27% to Rs 350.5 crore in March quarter
Total expenses in the fourth quarter were higher at Rs 2,972.2 crore as compared to Rs 2,693 crore a year ago, it added. Auto components significant Bosch ...
Yellen says G7 will give Ukraine funds it needs 'to get through this'
Yellen says G7 will give Ukraine funds it needs ‘to get through this’
The meeting wraps up on Friday. U.S. Treasury Secretary Janet Yellen said the G7 finance leaders on Thursday consented to give Ukraine the financial ...
Cartelization will be difficult, according to FM
Cartelization will be difficult, according to FM
Amidst rising inflation which has also raised concerns about the economic recovery from the coronavirus pandemic, the minister said there are a few ...
The most anticipated games of the summer and fall
The most anticipated games of the summer and fall
One of the year’s most intriguing indies, Card Shark casts you as an 18th-century French fraudster working your way up the social ladder. It looks like an ...
Arvind's March 2022 Consolidated Net Sales at Rs 2,203.50 crore, up 33.15% YoY
Arvind’s March 2022 Consolidated Net Sales at Rs 2,203.50 crore, up 33.15% YoY
Arvind shares closed at 109.05 on May 17, 2022 (NSE) and has given -12.34% returns over the last 6 months and 46.18% over the last 12 months. Net Sales at ...
Rupee drops to new low against the dollar for fourth consecutive trading session
Rupee drops to new low against the dollar for fourth consecutive trading session
After touching the day’s low of 77.74/$, the currency closed the day at 77.73/$, weakening by 15 paisa than its previous close. The rupee hit a new all-time ...
Market sell-off deepens on global recession worries
Market sell-off deepens on global recession worries
The Sensex plunged 1,416 points, or 2.6 per cent, to end at 52,792 — the lowest close since July 30, 2021. The Nifty50 index, on the other hand, closed at ...
Show next
We will be happy to hear your thoughts

Leave a reply

Compsmag - Latest News In Tech and Business
Logo