LG Energy Solution priced shares to raise 12.75 trillion won ($10.7 billion) in South Korea’s biggest initial public offering, setting aside concerns about battery fires that led to a mass recall of Chevrolet Bolt electric cars.
At 300,000 won apiece, the shares were priced at the top of the marketed range, Seoul-based LG Energy said in a filing Friday, confirming an earlier Bloomberg News report. The deal values the battery maker at about $59 billion, ranking it the third-biggest company on the benchmark Kospi, behind chipmakers Samsung Electronics Co. and SK Hynix Inc.
The offering was 2,023 times subscribed by institutional investors, LG Energy said.
LG Energy is seeking to increase production capacity to meet burgeoning global demand for electric-car batteries and improve the quality of its cells following a $1.9 billion recall of General Motors Co.’s Bolt EVs. It also wants to close the gap with market leader, China’s Contemporary Amperex Technology Co.
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