Submission of Preliminary Listing Review Application to Indian Authorities
LG Electronics has officially announced the initial public offering (IPO) of its India subsidiary and has begun the formal process.
According to industry sources on the 6th, LG Electronics submitted the Draft Red Herring Prospectus (DRHP) for its India subsidiary to the Securities and Exchange Board of India (SEBI) on the same day. The DRHP is a document that discloses the company's governance structure and financial status to the listing review authority to determine demand forecasting, offering price, and the date of the public offering.
It is generally known that the DRHP review takes about three months. Therefore, LG Electronics' listing on the Indian stock market is expected to take place as early as the first half of next year.
This IPO will be conducted through a secondary sale method, selling 15% of the existing shares without issuing new shares. The raised funds will flow directly to the headquarters.
Foreign media have projected that LG Electronics' India subsidiary is valued at $13 billion (approximately 18 trillion KRW) and is expected to raise up to $1.5 billion.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
