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| ▲ An ad notice on LG Energy Solution Ltd's retail subscription is seen at a Shinhan Investment branch in Yeouido in western Seoul, in this photo taken Jan. 18, 2022. (Yonhap) |
LG Energy Solution-listing
LG Energy Solution plunges on 1st day of trading
By Chung Joo-won
SEOUL, Jan. 27 (Yonhap) -- South Korean giant battery maker LG Energy Solution Ltd. (LGES) on Thursday started off with tepid responses on its stock market debut, the country's largest IPO deal so far, amid concerns about the U.S. rate hikes and the Russia-Ukraine conflict.
Its stock price plunged to 490,500 won (US$407) on the benchmark Korea Composite Stock Price Index (KOSPI) as of 9:21 a.m., down 17.84 percent from its opening price. But it was up from the IPO price of 300,000 won.
With the price fall, the market capitalization of LGES, the world's second-largest electric vehicle battery manufacturer after China's CATL, stood at 114.8 trillion won, placing itself as the second most valued company on the main bourse after top cap Samsung Electronics Co.
LGES' weaker-than-expected debut came despite the red-hot responses from the subscription process.
The company attracted 114.1 trillion won in deposits from some 4.4 million retail investors, which far surpassed the 81 trillion won submitted for SK IE Technology Co., a battery materials manufacturer that went public last year, the previous IPO record.
Analysts attributed LGES' tepid start to the outside risks in the stock market, such as the U.S. Federal Reserve's strong signal that it will raise its key interest rates soon, widely expected in March.
Investor sentiment also weakened from the escalating tensions from the threat of a Russian invasion of Ukraine. The United States and its European allies have failed to reach an agreement with Russia to avert a potential military conflict.
Earlier this week, LGES said it plans to expand its presence in North America, with a plan to invest more than 5 trillion won by 2024.
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