LS US Subsidiary Essex Solutions Successfully Raises 290 Billion KRW in Pre-IPO

Kwonseon, the World's No.1 Company... Approximately $200 Million Investment Raised
"Full-Scale Listing on Nasdaq and KOSPI to Begin Within the Year"

Essex Solutions, a US wire subsidiary of LS Corporation, the holding company of LS Group, has secured $200 million (approximately 290 billion KRW) in pre-IPO equity investment. The company plans to actively pursue a listing on the KOSPI or the US NASDAQ within this year.

On the 5th, LS Group announced that Essex Solutions completed a $200 million pre-IPO round. The investment was made through a third-party allotment rights offering, where the Mirae Asset-KCGI consortium acquired shares issued by the company. The $200 million investment is the largest single project fund established domestically last year.

The Mirae Asset-KCGI consortium acquired approximately 20% equity. Based on this, Essex Solutions’ pre-IPO market capitalization is estimated at about $1 billion (approximately 1.45 trillion KRW). Bain Capital, Goldman Sachs, and IMM reportedly participated in the bidding for this pre-IPO, which was led by LS Corporation.

LS Group stated that after selecting the lead underwriter for Essex Solutions’ IPO earlier this year, it plans to actively pursue the listing within the year. Although the initial plan was to list on KOSPI, due to strong interest and support from US local investment banks (IBs), a NASDAQ listing is also under consideration.

According to LS, Essex Solutions is the world’s leading wire manufacturer. Its main products are special wires for electric vehicles (EVs) and hybrid vehicles, as well as special wires for large-capacity transformers. Among these, special wires for EVs are core materials for drive motors and require technology capable of withstanding high voltage. Essex Solutions possesses world-class technological capabilities. Wire refers to insulated copper wire wound around electronic devices such as transformers or motors. EV wires are wound in coil form around EV drive motors to convert electrical energy into mechanical energy.

Essex Solutions supplies its products to leading global automakers such as Tesla and Toyota. In the North American region, it holds an overwhelming market share of number one. North America is the most active region for EV production, excluding China. Essex Solutions has production bases in North America, South America, Europe, and Asia, enabling flexible responses to protectionist trade measures.

Essex Solutions has set a goal to increase its EV wire market share to 70% in North America and over 50% in Europe within the next five years. An LS Group official said, “We succeeded in a large-scale pre-IPO and received market recognition for our future business value. We will continue to solidify our position as the leader in the wire industry through continuous research and development (R&D) and maintaining a technology gap advantage.”