[Special Stock] LG Energy Solution Post-IPO Aftershock... Secondary Battery-Related Stocks Plunge Together

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] LG Energy Solution, the largest initial public offering (IPO) in South Korean history, is causing related stocks to plummet following its listing.

As of 10:31 a.m. today, LG Chem, the parent company of LG Energy Solution, is trading at 63,000 KRW, down 5.12% from the previous day. Samsung SDI, a competitor of LG Energy Solution, is down 4.11%, and SK Innovation is down 6.68%.

In the KOSDAQ market, secondary battery parts manufacturer L&F has fallen more than 10%, and Cheonbo is also down over 5%.

LG Energy Solution, which was listed today, opened at 597,000 KRW, a 99% increase from the public offering price of 300,000 KRW, making it the second largest company by market capitalization on the KOSPI market. However, foreign investors sold more than 1.4 million shares in the early session, expanding the decline and pushing the price down to 450,000 KRW during the trading session.

While the market had high expectations that LG Energy Solution's listing would lead to a revaluation of secondary battery manufacturers, the sharp decline of LG Energy Solution, the leading stock in the secondary battery sector, from the first day of trading appears to have dragged down related stocks.