LG Energy Solution plans to raise as much as 12.75 trillion won ($10.8 billion) in what would be South Korea’s biggest-ever initial public offering, defying concerns over fires involving its batteries that led to a mass recall of Chevrolet Bolt EVs.
The company will issue 34 million new shares priced between 257,000 won and 300,000 won each, it said in a filing Tuesday. Parent LG Chem Ltd. will sell 850,000 shares, bringing the total to 42.5 million. Retail and institutional investors can subscribe on Jan. 18 and 19, according to the IPO prospectus, which said 20 percent will be allotted to employees. Trading will begin on Jan. 27.
The offering could give LG Energy a market value of 70 trillion won ($59 billion).
LG Energy, the world’s second-largest battery maker, replaced its CEO in October and set aside $918 million to cover costs related to the recall of more than 100,000 of General Motors' Chevrolet Bolts due to battery-fire risks.