Kwon Young-soo, a month after departure, filled the first step toward an IPO. As the IPO issue was initially called an urgent task, it is evaluated that the urgent fire has been extinguished.
The Korea Exchange held a listing committee on the KOSPI on the 30th of last month to conduct a preliminary review of LG Energy Solution and confirmed that LG Energy Solution was eligible for listing.
It is known that LG Energy Solution will submit a securities declaration to the Korea Exchange within this week at the earliest. It is expected that the IPO will be possible in January of next year after going through the process of filing a public offering, submitting an application for listing, and notifying of approval for listing, following the filing of a securities declaration.
From the time of his inauguration, Vice Chairman Kwon strongly expressed his will for an IPO. Regarding the corporate IPO on the first day of work on the 1st of last month, Vice Chairman Kwon said, “It has been delayed due to the GM incident, but the issue has been reached.
According to an industry insider, the passing of the preliminary examination for the IPO this time can be regarded as the first achievement since Vice Chairman Kwon took office. This is because the IPO, which had been sluggish, took its first steps right after taking office.
Previously, LG Energy Solutions submitted an application for preliminary examination for listing to the exchange in June, but it was temporarily suspended. The IPO was halted due to the recall of electric vehicle batteries supplied to GM in the United States. A total of 700 billion won in recall had to be paid.
Vice Chairman Kwon is also focusing on strengthening ESS investment facilities. LG Energy Solutions recently announced that it will invest KRW 1.576 trillion to invest in electric vehicle batteries and energy storage systems (ESS) in the North American market.
According to the stock market on the 1st, the enterprise value of LG Energy Solution is about 75 to 80 trillion won. It is a ‘big fish’ that will rank third in the stock market after Samsung Electronics (market cap of 449 trillion won) and SK Hynix (86 trillion won).
However, after the ignition of the GM electric vehicle, the reliability of battery quality must be improved to ensure that the selection of the host company and demand forecasting after the filing of the securities declaration will proceed smoothly.
In his inaugural address, Vice Chairman Kwon said, “We are facing a difficult reality due to the recent quality issues,” but he said, “There is no need to panic. We have the strength to turn the current crisis into an opportunity for a bigger leap forward.”