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