South Korea’s IPO K-wave swells on China crackdown

KRAFTON

18/01/2022 02:55

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Jennifer Hughes
    HONG KONG, Jan 18 (Reuters Breakingviews) - LG Energy
Solution’s record $11 bln float is part of a recent boom in
local listings. Geopolitics and regulatory uncertainties in
China are pushing investors to look elsewhere. Seoul’s
performance has been mixed, but it stands to benefit so long as
valuations don’t overheat.
    Full view will be published shortly.
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    CONTEXT NEWS
    - South Korean battery maker LG Energy Solution said on Jan.
14 that it had raised 12.8 trillion won ($10.8 billion) in its
initial public offering – the largest ever in the country. 
    - The deal, which valued the company at $59 billion, also
attracted record levels of demand with 1,988 domestic and
foreign institutional investors placing bids worth 2,023 times
the amount it was seeking, LGES said. 
    - The float was the latest in a string of big Korean
listings over the past year, with KakaoBank selling shares worth
$2.2 billion in July, and ecommerce company Coupang raising $4.6
billion in New York in March.
    - Korean companies last year raised almost $23 billion from
IPOs, including Coupang’s U.S. debut, per Dealogic data. That is
more than the funds raised in the preceding five years combined.
  
   

 (Editing by Robyn Mak and Katrina Hamlin)
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