South Korean battery manufacturer LG Energy Solution (LGES) has raised $ 10.8 billion (approximately Rs. 80,045 crore) in its first public offering (IPO), attracting a record for contract demands in South Korea, the company said on Friday.
Shares of LGES with a value of KRW 300,000 (approximately Rs. 18,710) each, on top of the range announced in regulatory fulfillment last month, raised KRW 12.8 trillion (approximately Rs. 79,840 crore).
The listing, which will take place on January 27, will be the largest in the country after KRW 4.8 trillion for Samsung Life (approximately Rs. 29,945 crore) IPO in 2010.
Prices cost the LGES at KRW 70.2 trillion (approximately Rs. 4,37,930 crore), making it the third most important company in South Korea after Samsung Electronics and SK Hynix.
GES, the battery-powered company LG Chem, offers Tesla, General Motor, and Volkswagen AG, among other car manufacturers.
A total of 1,988 local and foreign institutional investors submitted bids, the application of LGES applications was shown, bringing the total bid amount to $ 12.8 trillion (approximately Rs. 9,48,77,180 crore).
LGES reports that the IPO's official handbook compiled 2,023 times - the largest IPO in South Korea.
LGES expects to offer 34 million new shares in the IPO and LG Chem's parents plan to offer 8.5 million existing shares.
The parent company will own 81.8 percent LGES after listing.
The IPO comes as global sales of electric vehicles (EV), estimated at 2.5 million by 2020, are expected to grow by more than 12 to 31.1 million by 2030 and account for about a third of new car sales, according to the company Consulting Deloitte.
Analysts say they are closely watching the LGES 'IPO and how its stock trades later this month to measure the market life of the 2022 IPO.
South Korea saw its hottest IPO market recorded last year. More than 20 companies emerged in the main KOSPI market, growing about 17 trillion won, beating the previous record of 8.8 trillion won raised in 2010, according to the Korean Exchange.