LG Energy Solution gets preliminary approval for listing in S. Korea скачать в хорошем качестве

LG Energy Solution gets preliminary approval for listing in S. Korea

Korean battery maker LG Energy Solution Ltd. has received preliminary approval for listing on the country's main stock market, the main bourse operator said Tuesday, taking one step closer to its much-anticipated market debut. The approval by the Korea Exchange (KRX), the country's main bourse operator, came as LG Energy Solution resumed the process for the initial public offering after it settled the battery recall issues with its U.S. client General Motors Co. last month. The KRX said that the IPO application has passed the preliminary review for listing eligibility. The company will need to file documents with the Financial Supervisory Service next month and go through the rest of the required procedures before the market debut likely scheduled for late January. The upcoming listing of the world's second-largest battery producer after China's CATL has drawn much attention as it is expected to be the biggest public offering in the South Korean stock market to date, with its market value estimated at up to 80 trillion won (US$67 billion), according to analysts. Market watchers predict LG Energy Solution could raise around 10 to 15 trillion won through the offering. LG Energy Solution, the wholly owned subsidiary of LG Chem Ltd., submitted the application for a preliminary review in June with an eye to debut on the main KOSPI market before the end of this year. But the plan was held up when General Motors recalled Bolt EVs after their batteries supplied by LG caused fires. LG Energy Solution set aside 711 billion won to repay GM for the recalls from battery defects. LG Energy Solution said last month it was restarting the IPO process as the recall factor has been resolved. LG, South Korea's fourth-largest conglomerate, replaced LG Energy Solution's CEO early this month in a move largely seen as a signal to ramp up its battery business, including speeding up the IPO work. In the third quarter, LG Energy Solution posted an operating loss of 372.8 billion won, with sales reaching 4.03 trillion won, reflecting the one-off factor from the battery recalls. It logged 13 trillion won in revenue in 2020. (Yonhap)