[Special Stock] LG CNS Shows Weakness on KOSPI Debut, Falls About 5% Below IPO Price

LG CNS is showing weakness on its first day listed on the KOSPI, trading below its initial public offering (IPO) price.

As of 9:11 a.m. on the 5th, LG CNS was trading at 58,800 KRW, down 3,100 KRW (5.01%) from the IPO price of 61,900 KRW. The opening price was also below the IPO price, set at 60,500 KRW.

LG CNS is considered a major player in the domestic cloud sector alongside Samsung SDS. With the AI boom increasing demand for cloud services, it is gaining attention as an "AI beneficiary stock." The company operates IT consulting, computer system construction, and operation businesses. It also plans to enter business areas based on new IT technologies such as cloud and AI. Its consolidated sales increased by 70.7%, from 3.2833 trillion KRW in 2019 to 5.6053 trillion KRW in 2023.

In the demand forecast targeting institutional investors, LG CNS recorded a competition rate of 114 to 1. The funds gathered in the demand forecast amounted to approximately 76 trillion KRW. The IPO price was set at the top end of the desired price range (53,700 to 61,900 KRW) at 61,900 KRW. Additionally, deposits exceeding 210 trillion KRW poured in during the subscription for general investors.

LG CNS plans to use the investment capital secured through this listing to intensively invest in future growth engines such as research and development of digital transformation (DX) technologies including AI and cloud, and strengthening global competitiveness.