LG Electronics IPO: South Korea’s LG Electronics Inc. wants to list its Indian business on the stock market. For this, the company is now preparing to launch an initial public offering (IPO). It aims to raise $1.5 billion through this. The company may file a prospectus for the IPO with market regulator SEBI early next month.
The company is busy preparing
According to Bloomberg, the company has selected banks for a potential listing plan of its Indian unit. The report said that LG has selected banks including Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley as bankers for a potential listing plan next year.
what is the plan
According to the report, LG may try to raise $1-1.5 billion from the share sale, which could give LG Electronics India Private Limited a valuation of around $13 billion. Talking about LG Electronics India, it is a wholly-owned subsidiary of South Korea-based LG Electronics. It is an established brand in various sectors such as consumer electronics, home appliances, HVAC and IT hardware.
Let us tell you that globally, India is the second largest market for LG Electronics after the US. Currently, LG has two manufacturing units in Ranjangaon, Pune and Greater Noida.
Another South Korean company launches IPO
Let us tell you that the South Korean carmaker’s Indian unit Hyundai Motor India (HMIL) is also preparing for an IPO. The Gurugram-headquartered local subsidiary of Korean automaker Hyundai Motor Company (HMC) has recently filed a draft red herring prospectus (DRHP) with market regulator SEBI to reduce a part of its promoter stake.
