LG CNS launches $806 million IPO, aims to rejuvenate South Korea’s stock market, reports Bloomberg

SYDNEY: LG Corp’s technology services division has begun taking orders for an initial public offering (IPO) in Seoul, which could generate as much as 1.12 trillion won ($806 million), potentially making it South Korea’s largest IPO in three years. LG CNS Co., which offers services such as cloud computing and warehouse management, is accepting bids until January 15, as per the deal details obtained by Bloomberg. The company, along with a subsidiary of Macquarie Korea Asset Management Co., plans to offer 19.4 million shares priced between 53,700 won and 61,900 won each.

This IPO marks the first significant offering in South Korea since the political unrest in December and will serve as a gauge for investor interest in the country’s stock market, which saw a 10 percent decline in the benchmark Kospi last year. Additionally, this deal would represent Seoul’s largest IPO since LG Energy Solutions Limited’s over $10 billion share sale in January 2022. In 2024, IPOs in Korea raised $1.5 billion, showing an increase from the previous year but still significantly lower than the record $15 billion raised in 2021, according to Bloomberg’s data.

The success of the LG CNS IPO might influence online lender K Bank Co., which previously withdrew plans for a deal exceeding $700 million last year due to concerns about high valuations but aims to revive its IPO plans in 2025.

LG CNS intends to use the funds raised from the offering for facility upgrades, including replacing equipment in its data centers, pursuing mergers and acquisitions of other technology-focused companies, and paying off existing bonds. The company expects to determine its share price on January 17 and list on February 4, as stated in the deal terms. Morgan Stanley, BofA Securities, and KB Securities are serving as joint global coordinators for the offering.