LG Energy to heat up Korea’s record IPO market in 2022

IPO size to top 2021’s high of $17 billion; 14 companies’ market caps expected to surpass 1 trillion won each

LG Energy to heat up Korea’s record IPO market in 2022
Tae-ho Lee 2
2021-12-31 18:19:40 thlee@hankyung.com
IPOs

South Korea’s initial public offering market is expected to set a record in 2022, heating up from the start of the year as LG Energy Solution Ltd. and other major companies are lined up for listings.

They are likely to raise more than the current high of 20.1 trillion won ($16.9 billion) in 2021 with 14 companies’ enterprise values estimated at over 1 trillion won each.

LG Energy, the world’s No. 2 electric vehicle battery maker, aims to raise 10.9 trillion won to 12.8 trillion won in January through the largest-ever initial listing in the country. The IPO would be more than double the current IPO record of Samsung Life Insurance that raised 4.9 trillion won in 2010.

The company is scheduled to hold bookbuilding for institutional investors on Jan. 11-12 and public subscription on Jan. 18-19 for a debut on the Kospi on Jan. 27. Its market capitalization is expected to be at up to 70.2 trillion won right after the listing, becoming the country’s third most valuable company on the Kospi after Samsung Electronics Co. and SK Hynix Inc.

HYUNDAI ENGINEERING, HYUNDAI OILBANK

Hyundai Engineering Co., a construction unit of Hyundai Motor Group, and Hyundai Oilbank Co., the refinery unit of Hyundai Heavy Industries Holdings Co., seek listings.

Hyundai Engineering targets a listing on Feb. 15. Its market capitalization will reach up to 6 trillion won, based on its proposed price guidance, surpassing that of its parent company Hyundai Engineering & Construction Co. (Hyundai E&C) at 4.9 trillion won. Hyundai E&C is the top shareholder with a 38.6% stake.

Hyundai Oilbank on Dec. 13 submitted an application for an IPO with its market capitalization forecast to be around 10 trillion won.

Kyobo Life Insurance Co., the country’s third-largest life insurer by sales, on Dec. 21 applied for a preliminary review of its public listing with the Korea Exchange, three years after it canceled the IPO plan at the end of 2018 amid a thorny dispute with overseas investors.
Yeouido, Seoul's main finance and investment banking district
Yeouido, Seoul's main finance and investment banking district

GROCERY E-COMMERCE TRIO

Grocery delivery platform trio – SSG.COM, Kurly Inc., and Oasis Corp. - are also slated to attract investors.

SSG.COM, the e-commerce brand of South Korea’s retail giant Shinsegae Inc., targets a corporate value of 10 trillion won after a listing in 2022. Kurly, an operator of online grocery delivery service Market Kurly, raised 250 billion won in pre-IPO funding at a valuation of up to 4 trillion won, according to investment banking industry sources in December. Another grocery delivery platform, Oasis Corp., is the only company that posts profits among them.

Kakao Corp. is expected to list Kakao Entertainment Corp. after KakaoBank Corp. and Kakao Pay Corp. successfully went public in 2021. The operator of Kakao Webtoon is in the process of selecting bookrunners.

CJ Olive Young, the country’s top beauty store chain, is also seeking a listing with enterprise value estimated at 3 trillion won, while One store Co., the South Korean homegrown app store, was moving ahead with its plan to go public with a targeted enterprise value of 2 trillion won. SK Shieldus, formerly known as ADT Caps Co., may seek a listing.

Write to Tae-ho Lee at thlee@hankyung.com
Jongwoo Cheon edited this article.

LG Energy unveils IPO price band for Korea’s largest listing

LG Energy unveils IPO price band for Korea’s largest listing

South Korea’s LG Energy Solution Ltd. has set an initial public offering price band for the largest-ever initial listing in the country next month to raise up to $10.8 billion.LG Energy on Dec. 7 filed a registration statement to the Financial Supervisory Service. The top South Korean

Kyobo Life eyes 2022 IPO to end feud with investors

Kyobo Life eyes 2022 IPO to end feud with investors

Kyobo Life Insurance Co. on Tuesday applied for a preliminary review of its public listing with the Korea Exchange, three years after it canceled the IPO plan at the end of 2018 amid a thorny dispute with overseas investors.The IPO is expected to take place in the second half of next year at i

Hyundai Oilbank applies for first-half IPO in 2022

Hyundai Oilbank applies for first-half IPO in 2022

Hyundai Oilbank Co., part of South Korea's Hyundai Heavy Industries Holdings Co., on Monday submitted an application for an initial public offering, which the company expects to raise up to 2 trillion won ($1.7 billion).This is the refiner's third attempt at an IPO, after it swung to an operat

Will LG Energy’s IPO overcharge?

Will LG Energy’s IPO overcharge?

The world’s second-largest electric-vehicle battery maker, LG Chem-owned LG Energy, is hoping a separate listing will give the business a little more spark.Given the incredible investor interest in EVs right now, the company’s mammoth IPO will probably unlock substan

Hyundai Eng seeks to raise up to $1 bn in Feb IPO

Hyundai Eng seeks to raise up to $1 bn in Feb IPO

(Courtesy of Hyundai Engineering) Hyundai Engineering Co., part of South Korea's Hyundai Motor Group, will make a trading debut on the Korea Exchange next February, raising up to 1.2 trillion won ($1 billion), according to its registration statement filed on Friday.The builder of apartments and

Market Kurly raises $200 mn at over $3 bn valuation

Market Kurly raises $200 mn at over $3 bn valuation

Kurly Inc., an operator of South Korea's online grocery delivery service Market Kurly, has raised 250 billion won ($212 million) in pre-IPO funding at a valuation of between 3.7 trillion and 4 trillion won ($3.1 billion-$3.4 billion).The gourmet food delivery platform, known for a so-called "d

Korea homegrown app begins process for H1 2022 listing

Korea homegrown app begins process for H1 2022 listing

One store Co., the South Korean homegrown app store developed by the country’s top online platform Naver Corp. and three telecom carriers, is moving ahead with its plan to go public in the first half of next year with a targeted corporate value of around $1.7 billion.The listing is the f

Kurly, SSG.COM, Oasis fast-track 2022 IPO plans

Kurly, SSG.COM, Oasis fast-track 2022 IPO plans

Kurly has stepped up its local IPO application process, with underwriters and managers selected Competition among South Korean e-commerce companies for initial public offerings is expected to get even fiercer next year. Kurly Inc., the operator of premium grocery delivery platform Market Ku

Race for CJ Olive Young IPO underwriting deal heats up

Race for CJ Olive Young IPO underwriting deal heats up

The competition to underwrite a listing of CJ Olive Young, South Korea’s top beauty store chain, is intensifying with some brokerage houses valuing the company at over $3.4 billion, more than double earlier estimates.Investment banks were known to be going for broke to win the deal as th

IB firms enter tough race for SSG.COM IPO underwriting deal

IB firms enter tough race for SSG.COM IPO underwriting deal

SSG.COM's distribution center for online-ordered products, Shinsegae NEO 003. The race to become the lead underwriter for the IPO of Shinsegae Group’s e-commerce brand SSG.COM is getting fierce. A total of nine institutions have submitted their bids to SSG.COM’s request for proposal

Can SSG.COM IPO succeed despite mounting losses?

Can SSG.COM IPO succeed despite mounting losses?

SSG.CO warehouse SSG.COM, the e-commerce brand of South Korea’s retail giant Shinsegae Inc., reported its second-largest operating loss in the second quarter as it spent more on marketing to increase new customers. That is a move to raise its corporate value by ramping up revenue at the e

(* comment hide *}