Type to search

South Korea’s LG Energy Solution Shares Double on Debut

Shares surge about 99% above its IPO price of 300,000 won shortly after market opens, as investors cheer upbeat outlook of global electric vehicle industry

The wilting US economy has forced South Korea's LG Energy Solution (LGES) to take another look at its plan to make EV batteries in Arizona.
LGES said in March the plant would be its first US factory to make cylindrical cells, a type of battery that has been used in Tesla and Lucid vehicles. File photo: Reuters.


Shares of South Korean electric vehicle (EV) battery maker LG Energy Solution (LGES) rose as much as 99% on their debut on Thursday after the company raised nearly $10.8 billion last week in the country’s biggest initial public offering.

The shares surged about 99% above its IPO price of 300,000 won shortly after the market opened, as investors cheered the upbeat outlook of the global electric vehicle industry.

LGES shares pared some of their gains to stand at 491,000 won in mid-morning trading, putting the company’s market capitalisation at 121.7 trillion won. It is the country’s second-most valuable stock after chip giant Samsung Electronics.

Spun out of LG Chem, the company has a market share of more than 20% of the global EV battery market.

LGES supplies Tesla, General Motors and Volkswagen, among others.

The world’s biggest IPO so far this year has attracted heavy demand from investors. The IPO received bids worth about $80 billion from international institutional investors, Reuters reported.

But the Korea Exchange‘s benchmark Kospi has become Asia’s worst-performing stock index this year, thanks in part to LGES sapping liquidity from other South Korean shares.


  • George Russell, with Reuters




LG Energy Solution Said to Plan US Battery JV with Honda


LG Energy Solution Powers Up With Stake In China Battery Firm Greatpower


Samsung To Supply Advanced Auto Chips To Volkswagen



George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.


AF China Bond