LG Energy Solution Rewrites IPO History... Subscription Deposit Sets New Record at 114 Trillion Won

Record-high subscription deposits and number of subscriptions in domestic IPO history
3rd largest market cap based on offering price... If 'ttasang' succeeds, it will rank 2nd

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] LG Energy Solution has rewritten the history of its initial public offering (IPO). It set new records by surpassing the largest subscription deposit and the number of subscription cases ever recorded. It achieved a 'record-breaking' success. Due to higher-than-expected competition rates, the amount allocated equally to each investor is limited to around one share.

According to the financial investment industry on the 19th, the subscription deposits collected through seven securities firms including KB Securities, Shinhan Financial Investment, and Daishin Securities amounted to approximately 114.06 trillion won. This exceeds last April's SKIET record (81 trillion won) by more than 30 trillion won, marking the largest scale in domestic IPO history.

The number of subscription cases also reached about 4.424 million, breaking the record for the highest number since the ban on multiple subscriptions. This figure is more than double the previous highest number of subscriptions after the ban, KakaoBank (about 1.86 million cases), and is comparable to SKIET (about 4.74 million cases), which had the highest number including multiple subscribers.

Initially, securities firms expected subscription deposits of around 100 trillion won and about 2 million subscription cases. As the competition rate increased, the portion of public offering shares allocated equally to each investor decreased to about one share.

The securities firm with the highest equal allocation is Daishin Securities, with 1.75 shares. This is followed by Hi Investment & Securities (1.68 shares), Shin Young Securities (1.58 shares), Shinhan Financial Investment (1.38 shares), KB Securities (1.18 shares), Hana Financial Investment (1.12 shares), and Mirae Asset Securities (0.27 shares).

Most investors at securities firms will receive one or two shares through a lottery, but 7 out of 10 investors who subscribed through Mirae Asset will not receive even one share.

LG Energy Solution will begin trading on the KOSPI market on the 27th of this month. The public offering price is 300,000 won. The opening price will be determined between 8:30 and 9:00 a.m. on the listing day, within a range of 90% to 200% of the public offering price, based on the matching price of bid and ask quotes.

A price limit of ±30% during the trading day will apply based on the opening price. If the opening price is set at 600,000 won, which is double the public offering price, and the stock hits the upper limit on the first day ('ttasang'), the price can rise to a maximum of 780,000 won. Achieving 'ttasang' means earning a profit of 480,000 won per share on the listing day.

LG Energy Solution's market capitalization based on the public offering price is 70.2 trillion won. If 'ttasang' is achieved, the market cap will increase to 182.5 trillion won. Even if it lists at the public offering price, it will rank third in KOSPI market capitalization after Samsung Electronics (455.5 trillion won) and SK Hynix (92.5 trillion won). If the stock price rises by just 32% from there, it will surpass SK Hynix to become the second largest by market capitalization.