Battery manufacturer LG New Energy’s IPO has received preliminary approval

LG New Energy, a supplier to companies such as Tesla, General Motors and Hyundai Motors, applied for review of its IPO plan in June this year. In August, the IPO process of LG New Energy was suspended due to the issue of compensation costs for the recall of General Bolt electric vehicles. In early October, LG Chem, the parent company of LG New Energy, said that it had reached an agreement with General Motors on the Bolt recall costs and would pay US$1.9 billion in compensation. That month, LG New Energy resumed its IPO work.

LG New Energy’s IPO may raise US$10 billion to US$12 billion, which may be more than twice the largest IPO in South Korea’s history. Previously, South Korea's largest IPO came from Samsung Life Insurance, which raised 4.9 trillion won ($4.39 billion) through its IPO in 2010.

LG New Energy has entrusted KB Securities and Morgan Stanley to lead the proposed transaction. Bank of America, Citigroup, Daishin Securities, Goldman Sachs and Shinhan Investment were also appointed as underwriters.

A regulatory filing showed that LG New Energy suffered an operating loss of 373 billion won (approximately US$313 million) in the third quarter, compared with an operating profit of 169 billion won in the same period last year. The third-quarter operating profit of LG New Energy's parent company was also affected, falling 19.6% year-on-year to 727 billion won ($618 million).

As global automakers invest billions of dollars to accelerate the transition to low-emission vehicles and prepare to phase out internal combustion engine vehicles, LG New Energy hopes to expand its development by taking advantage of soaring battery demand. .

　(Original title: LG New Energy IPO has received preliminary approval)