Hyun Shin-kyun, CEO of LG CNS, "330 Billion Won Invested in M&A... Actively Considering AI Companies"

"Reviewing Acquisition of Companies Supporting AI Application in Industrial Sites"
"Positive Overseas Institutional Investors" Confidence in IPO

LG CNS plans to invest about half of the funds raised through its initial public offering (IPO) in mergers and acquisitions (M&A) of companies in the artificial intelligence (AI) and cloud sectors.

On the 9th, Hyun Shin-kyun, CEO of LG CNS, held an IPO press conference at the Conrad Hotel in Yeouido, Seoul, where he unveiled the company's mid- to long-term growth strategy.

LG CNS submitted its securities registration statement on the 5th of last month and is aiming to list on the Korea Composite Stock Price Index (KOSPI) market in February. The total number of shares to be offered is 19,377,190, with a desired offering price per share ranging from 53,700 KRW to 61,900 KRW. Through this listing, the company is expected to secure up to 600 billion KRW in investment funds.

LG CNS CEO Hyun Shin-kyun is making a presentation at the IPO press conference held at Conrad Hotel in Yeouido, Seoul on the 9th. Photo by LG CNS

Of this amount, 330 billion KRW is planned to be used for M&A. Companies in the AI and cloud sectors, which are driving the company's growth, are the primary candidates for consideration. CEO Hyun stated, "LG CNS plays a role in applying AI models to industrial sites," adding, "We plan to invest in areas that excel at application or in platforms that facilitate effective application."

Despite domestic political variables, he expressed confidence in a successful IPO, citing positive signals from meetings with institutional investors. CEO Hyun recently met with numerous institutional investors in Hong Kong and Singapore and plans to visit the United States soon. He said, "I was concerned that domestic negative events might freeze investor sentiment, but there was more interest than expected," and added, "Many institutions have expressed their intention to invest."

He also offered a positive outlook on the company's future valuation. If the listing proceeds as planned, LG CNS's market capitalization is expected to reach between 5.2 trillion KRW and 6 trillion KRW. CEO Hyun explained, "Assuming a price-to-earnings ratio (PER) of 22 to 25 times, similar to comparable groups, and an annual net profit growth of about 10%, we can estimate the future stock price," adding, "If the growth story is valued, the stock price could rise even faster."

Finally, CEO Hyun remarked, "I think the investor response to LG CNS reflects the response to the Korean capital market this year," and added, "We expect it to generate a positive signal for the Korean economy."

LG CNS plans to conduct a public subscription for general investors from the 21st to the 22nd of this month and to newly list on the KOSPI market in February. The lead underwriters for the listing are KB Securities, Bank of America (BoA), and Morgan Stanley, with Mirae Asset Securities, Daishin Securities, Shinhan Investment Corp., and JP Morgan serving as joint underwriters.