MOSCOW (MRC) -- South Korean battery maker LG Energy Solution (LGES) raised USD10.8 billion in its initial public offering (IPO), attracting record demand for a deal in South Korea, reported Reuters with reference to the company's statement.
LGES shares were priced at 300,000 won each, at the top of a range announced in a regulatory filing last month, raising 12.8 trillion won (USD10.76 billion).
The listing, set to take place on Jan. 27, will be the biggest in the country after Samsung Life Insurance Co Ltd's 4.8 trillion won IPO in 2010.
The pricing values LGES at 70.2 trillion won, making it South Korea's third most-valuable company after Samsung Electronics Co Ltd (005930.KS) and SK Hynix Inc.
LGES, LG Chem Ltd's battery subsidiary, supplies Tesla Inc, General Motor Co and Volkswagen AG, among other automakers.
A total of 1,988 domestic and foreign institutional investors placed bids, LGES' filing showed, valuing total bids at record USD12.8 trillion. LGES said the institutional book for the IPO was 2,023 times covered - the largest ever for an IPO in South Korea.
LGES expects to offer 34 million new shares in the IPO and parent LG Chem plans to offer 8.5 million existing shares. The parent company will own 81.8% of LGES after the listing.
As MRC wrote previously, Mura Technology (Mura), the UK-based plastics recycling technology pioneer, has just completed an equity investment from LG Chem, a leading global chemical producer. The investment bolsters Mura’s plans to develop and deploy industrial-scale advanced recycling capacity across the world, with LG Chem joining the growing list of strategic partners adopting Mura’s technology.
We remind that LG Chem, South Korean petrochemical major, reduced run rates at all of its three naphtha crackers in Deasan and Yeosu, South Korea to approximately 80% on 5 January, 2021, on the back of weak demand and highly volatile upstream naphtha costs. All three crackers with a combined capacity of 3.25 million tons of ethylene and 1.48 million tons of propylene would operate at reduced rates throughout the month of January. It is reported that the producer would ramp up the production in February, however, it is unclear on the exact schedule.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
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