The Indian unit of the South Korean company LG Electronics Inc. filed for an initial public offering (IPO).
It is worth noting that the mentioned Asian country’s market, including its technology segment, is currently under active development. In this case, the remarkable thing is that many foreign companies seek to gain investors in the specified market.
LG Electronics plans to sell 101.82 million shares of its Indian unit in an IPO that is likely to become one of the biggest in India. According to a draft red herring prospectus filed with the market regulator, the sale will constitute 15% of the post-offer equities of the unit.
LG Electronics, according to media reports, may try to raise $1 billion to $1.5 billion in an IPO. Probably, in this case, the market capitalization of LG Electronics India will reach about $13 billion.
It is worth mentioning that in October Hyundai Motor Corp.’s record $3.3 billion listing of its Indian unit.
The expected IPO of LG Electronics will strengthen the South Asian country’s status as the busiest venue globally for first-time share sales in the current year. Since the beginning of 2024, more than 300 companies have raised more than $15 billion in public listings amid strong demand from retail investors and global funds.
At least three IPOs, including Vishal Mega Mart Ltd., which plans to receive up to $944 million, have offers that start next week.
It is worth noting that this year international companies have seized on the strengths of the Indian stock market to offload stakes in local subsidiaries. For example, British American Tobacco sold shares in its partner in a South Asian country.
As we have reported earlier, LG Unveils New Version of AI Software.
