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LS Automotive to go public next year by offering 30% share

Collected: 2016.12.28

Distributed: 2016.12.29

Source: Go Direct

LS Automotive Corp., an automotive electronic parts making unit of LS Group, will go public in the first half of next year by offering 30 percent of its shares with the aim of raising a maximum of 100 billion won ($82.9 million) to spend on expanding its overseas business by adding manufacturing facilities in North America and China.

According to the investment banking industry on Monday, LS Automotive will apply for the preliminary review for the initial public offering to the Korea Exchange (KRX) in March next year for its Korean stock market debut around May and June.

Among the 30 percent shares the company plans to offer, 15 percent will be in new issues and the other half in existing shares offered by its parent company LS Mtron Ltd who owns 100 percent stake in the company. After the market debut, LS Mtron’s stake will be reduced to 70 percent, but it will be able to secure 50 billion won from the stake sale.

The industry estimates LS Automotive’s market capitalization after IPO at around 400 billion won to 500 billion won. The estimated 80 billion won to 100 billion won worth IPO proceeds will be used to set up new production facilities in overseas countries including the United States, Mexico, China and India. “We will expand our production capacity to meet the increasing demand from the global market,” said an official from the company. “We will broaden our overseas business in emerging markets such as India,” he added.

Founded as Daesung Electric Co. in 1973 and bought by LS Group in 2008, the company changed its name to LS Automotive on December 15.

By Song Gwang-sup

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