S Korea’s LG Energy Solution IPO attracts around $80b in bids

South Korean battery maker LG Energy Solution‘s (LGES) $10.7 billion initial public offering (IPO) has received bids worth around $80 billion from institutional investors, two sources with direct knowledge of the deal said.

The book for the offering, which is the largest ever in South Korea, will close on Wednesday with deal pricing set for Friday.

“We are getting the sense that demand has been good, but we cannot confirm or comment on the specific figures,” a spokesman for LGES said in a statement.

Potential investors were told on Tuesday there was no price sensitivity in the order book, which was already multiple times oversubscribed, said a third source, also with direct knowledge of the deal.

The sources could not be named as the information was not yet public.

At $80 billion, demand is about 13 times more than the $6 billion on offer to institutions, according to the company’s regulatory filings for the IPO.

LGES is LG Chem Ltd’s wholly owned battery subsidiary and supplies electric vehicle (EV) batteries to Tesla Inc and General Motors Co among others.

The IPO could take the company’s value to as much as 70.2 trillion won ($58.80 billion), which would make it South Korea’s third-biggest listed company after Samsung Electronics Co Ltd and SK Hynix Inc.

Reuters reported in December it was likely LGES would price its shares at the top of the range.

The price range was set at 257,000 won ($215.27) to 300,000 won ($251.29) apiece when the deal was launched last week.

Reuters

Singapore Reporter/s

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.