The Korea Exchange said on Tuesday that LG Energy Solution LGES has received preliminary approval for what is expected to be South Korea's biggest initial public offering. A supplier to Tesla, General Motor and Hyundai Motor, among others, LGES filed for a review of its IPO plans in June.
In October, LG Chem's wholly owned subsidiary resumed work on its IPO, which was suspended in August due to a lack of clarity regarding recall costs involving GM's Bolt electric vehicles.
According to the publication IFR, the IPO could raise US $10 billion to US $12 billion.
A US $10 billion-US $12 billion IPO would be more than double the biggest ever listing in South Korea, the 2010 IPO of Samsung Life Insurance, which was worth 4.9 trillion won US $4.39 billion. The company has mandated KB Securities and Morgan Stanley to lead the proposed deal. Also, Bank of America, Citigroup, Daishin Securities, Goldman Sachs and Shinhan Investment Corp were mandated as bookrunners.
LG Energy Solution reported a loss of 373 billion won US $313 million in the July-September quarter compared to 169 billion won a year earlier, according to a regulatory filing.